Yup, it’s true. The WaPo’s been fighting this one forever, while the Wall Street Journal has long noted its certainty. Well, yesterday an unexpected shot in the arm came from the typically pro-tax New York Times, which declared on its front page that there has been a jump in tax revenues. A number of Members of Congress noted this in last month’s blog row as well, as did the President in his weekly radio address on Saturday. There, he said:
“The tax relief we delivered has helped unleash the entrepreneurial spirit of America and kept our economy the envy of the world. So I will continue to work with Congress to make that tax relief permanent.”
We’re not surprised. In the depths of the recession we pushed for tax cuts saying that they would lead to more investment and ultimately to jobs. We weren’t guessing. We knew this was the only way we were able to grow out of prior recessions. Investment led the way every time.
So when folks like Governor Corzine of New Jersey only see one way out, i.e., raising taxes, we say try the other way. Cut taxes and it will — amazingly — lead to higher tax revenues, as people invest and spend.
What a concept.