Who said this?

[chuck34]

Ok.
http://www.budget.gov.au/2007-08/bp1...p1_bst7-01.htm

Australia introduced a Goods and Services Tax in the year 2000. With a small reduction in income tax, the additional consumption tax effectively caused a net overall tax increase in real terms.
So much so that in 2007, the net debt was lowered to zero.

An increase in the effective rate of taxation, led to an increase in revenues for the government collected by taxation, and therefore a discharge of debt.

QED.

How does that disprove the point that a reduction in income taxes will result in higher tax revenue? Seems that the oposite is true.

Al-Qaeda.

Committing government spending to counter the threat of terrorism, boosted aggregate demand. Government spending as an injection into the economy, has a far greater influence over aggregate demand, than fiddling with tax rates will.

As a percentage of GDP, defense spending only went back to the '96 level by '03, and well below the 80's and before.

http://www.truthandpolitics.org/mili...ative-size.php

No I'm not. I'm referring to the $12 trillion and rising in government debt.

But govenment debt is a two sided coin, revenue and SPENDING. If the revenue went up by that $12 trillion, but spending went up by $14 trillion, we'd still be in debt.

What evidence?!

"Receipts by Source. Retrieved from the Government Printing Office Access.". GPOAccess.gov.2009.
http://www.gpoaccess.gov/usbudget/fy...s/hist02z1.xls

For the years 2001-2003 which acording to you "When Bush cut taxes in '01-'03, revenues went UP", they did not. They FALL in each of those years across the board. In fact there isn't even one single set of reciepts from tax which goes up.

The economy hadn't rebounded yet in '01-'03, and the cuts hadn't really taken effect yet. Look past that to the period '03-'06 when all the effects were really being seen.

http://www.cbo.gov/doc.cfm?index=8116&type=1
"Total federal revenues grew by about $625 billion, or 35 percent, between fiscal year 2003 and fiscal year 2006."
"Had revenues grown at the same rate as the overall economy between 2003 and 2006, federal receipts would have increased by only $373 billion."
"In the other direction, higher realizations of capital gains (including any effects associated with legislated reductions in tax rates) added 0.3 percentage points to the ratio of individual income tax revenues to GDP."
"Revenues from both corporate and individual income taxes have continued to grow faster than GDP."

Laffer's theory IS crap and official government data shows it to be crap.

My government data is better than your government data. :P