kongming wrote:"But here in the States tax cuts increase revenue for the government, both on the state and federal level."
No, this is a bullshit, completely counter-intuitive myth that conservatives have invented as ammo for fiscal conservatism, and it's half the reason we're having problems with our government budgets. We had nothing but tax cuts (especially for the wealthy) under Bush, and yet our deficit kept going up. Gee, I wonder why. Could it be because reducing government revenue... actually reduces government revenue? Crazy idea, I know.
It isn't completely bullshit, although not what happens regularly. If taxes are extremely high and confusing with many options for deductions, it has proven possible to increase tax yield by lowering the base rate and streamlining rules. I think this is already well presented in the game with tax evasion that can appear if tax rates are too high.