>increase in revenue as taxes fell
yes, of course - reduced taxation increases the money supply so the
economy booms so revenue increases (there must be a limit though, with
zero taxation you *must* get zero revenue).
The problem is the *other* effects of an increased money supply: unless
GDP increases to match the money supply (which it never does) you get the
classic situation of more dollars chasing the same (or slightly more)
goods/services so you get inflation - later, so indexing the graph doesn't
show it!
AndyD 8-)#
©2003 Andy Davies |
