Still more evidence to chew on:
The Bush Capital Gains Tax Cut after Four Years: More Growth, More Investment, More Revenues
In May 2003, President Bush cut capital gains tax. What's happened in the four years since:
Total federal revenues increased $740 billion (2003-07), and capital gains tax revenues increased from $55 billion the year before the tax cut (2002) to an estimated $110 billion in 2006 (all figures adjusted for inflation to constant 2006 dollars).The rich did not get a huge tax cut from the capital gains cut; in fact, the percentage of income taxes paid by the rich increased from 34 percent to 39 percent from 2002 to 2005 (the most recent year for which data are available).The rate of business capital investment has undergone a U-turn — from negative business investment spending in the two years before the tax cut to an average annual increase in business investment of more than 10 percent in the three years after the tax cut.I'm convinced. Why aren't you?The only truly reliable predictor of the future is the past. And here the evidence is fairly straightforward. Over the past 30 years a consistent pattern has emerged: every time the capital gains tax has been cut, capital gains tax revenues have risen. Every time the capital gains tax has been raised, capital gains tax revenues have fallen.