When a politician says they're going to raise your taxes, what they really mean is they're going to raise tax rates. Lost on the minds of Democrats and Barack Obama is the fact that an increase in federal tax rates does not necessarily mean an increase in federal tax revenues. As a matter of fact, history reveals just the opposite is true.In 1961 when John F. Kennedy became President, the top marginal tax rate was 91%. Kennedy lowered the top rate to 70%, and more revenue came into the federal treasury from the top wage earners than under the 91% rate. Why? For the same reason that more revenue is often raised at department stores sales than when merchandise is at the regular price. More people execute transactions more often, which increase revenue, even though items are being sold for less. When tax rates are lowered, more people execute transactions that generate tax revenue more often than execute them at higher tax rates. Why? At the lower tax rate, the transaction represents a...(Read Full Post)