Get this: US tax nonwithheld receipts from individuals hit a record one day $48.7 billion increase on April 24th. The prior record was a year ago at $36.4 billion. This reflects, almost always, capital gains tax receipts from the bullish market at the record low 15 percent marginal tax rate on investment. Did someone say Laffer curve?
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Since the Bush tax cuts of mid-'03, the fiscal years '04, '05, '06 and we're almost halfway through '07, nonwithheld tax receipts up $144 billion, or 59 percent.
More from Kudlow on how taxes have affected the economy here:
Question: What do Neil Cavuto and most of the folks over at Fox News; Steve Forbes, Rich Karlgaard, and much of the intellectual inventory over at Forbes magazine; Larry Kudlow, Art Laffer, Don Luskin, Brian Wesbury, and most of the other money types who pop up around 5 p.m. EST each weekday on CNBC; the crowd over at the Wall Street Journal editorial page; and the full complement of writers right here on NRO Financial have in common?
Answer: They stuck to their models when the financial world was awash in pessimistic hysterics, and reminded all who would listen that the underlying economy was strong, that the 2003 tax cuts would do their magic, and that smart investors and entrepreneurs would act accordingly and put their money to work. They were ridiculed. They were shouted down. They were attacked. And they were ignored by the vast hoard of pundits and talking heads. But in the end they were right.
Dow 13,000.
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