States Join Fedl Govt in Reaping Tax Boon

The economic forces fueling record federal tax revenues are now appearing in state tax ledgers. Opponents of Bush's tax cuts predicted massive reductions in fedl tax revs, while its proponents predicted just this: a huge increase in the national economic pie, making a smaller fraction of that bigger pie (lower tax rate creates a larger economic pie) constituting a larger pie slice (higher tax rev) than the larger fraction (high tax rate) of a smaller pie (higher tax rate creates a smaller pie).

This article fails to connect these increased tax revs to the lower tax rates conceived by Bush and passed by the then-Republican congress and senate. Also, this article flatly reports state officials as "giving back" state tax income via lowering state tax rates. Prediction: the states that lower their tax rates will find that they get even larger tax revs by further boosting their local economies. Clearly, increased tax revs don't make states able to "afford" to lower their tax rates, but rather merely give state legislators ignorant of economic principles the courage to lower tax rates.

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