Originally posted by AquaShrimp
Nah, not everytime. They provide the potential for growth, but they don't cause it. As for the record high tax incomes, is it a direct correlation to the tax breaks? I'm going to say no. There are a variety of causes, corporations being forced to pay more, population growth, import taxes, etc.
What we're talking about here is basic economics. Something liberals will never learn because they are too busy with their women's studies classes, and rallies for homosexuals on campus.
The record tax income is directly from tax cuts. It's called Laugher's Curve (I believe, it's been a while since I had economics). There's a magic point where you get more money then any other point on the curve. If you tax less then this point, you get less money, if you tax more then this point, you get less money.
It has directly to do with supply and demand, and applies equally as well. Basically, if you charge more in taxes, less of the product will be sold, thus you'll get less money, even though you're charging a higher percentage. If you charge less, you'll be getting more people paying taxes, but at a lower percentage, thus you get less.