Not really. As the
Wall Street Journal has pointed out for years and years, income tax revenues tend to remain fairly steady as a percentage of GDP (about 19.5%), regardless of the level of marginal income tax rates. This suggests strongly that taxpayers shift their activities away from taxable events during times of relatively high income taxes, and back to them during years of lower tax rates. The lesson is that American taxpayers have a sort of built-in tolerance for a certain level of income taxation. Try to exceed that, and you achieve nothing positive, and may in fact be acting contrary to your intended goal of raising additional income tax revenue.
Tax and spenders really need to study more macroeconomics. The overall economy tends to suffer after periods of tax increases, and then rebound after a relaxation of tax rates.
Here's a brief prose summary of this effect from Standford University's Hoover Institution:
HOOVER INSTITUTION
Essays in Public Policy
Taxation and Economic Performance
W. Kurt Hauser
Executive Summary
Over the past two centuries, economists have debated whether or not higher rates of taxation lead to increased levels of government revenues. In the eighteenth century, Adam Smith pointed to a reduced level of revenues from substantially higher tariffs and duties on traded goods. In the twentieth century, the Laffer Curve postulated that there would be no government revenue at a taxation level of 100 percent or 0 percent. More recently, the debate focused on the tax increases of 1990 and 1993, which were designed to reduce the federal budget deficit through an increase in government revenues. In fact, the forecasted revenue generation following each tax increase fell short of the mark.
Increases in tax rates have not raised the desired additional revenues, but they have dampened economic activity. Higher tax rates tend to reduce the tax base as taxpayers have disincentives to work, produce, save, or invest. There are, however, incentives to hide, shelter, and underreport income as tax rates are raised. Thus, the economy as a whole tends to perform less well following a tax increase. Conversely, the economy tends to perform more favorably following a reduction in tax rates. In the postwar period, government revenues as a percentage of gross domestic product have averaged 19.5 percent despite marginal income tax rates as high as 92 percent and as low as 28 percent. Despite the historic record, policy makers continue to embrace the notion that an increase in marginal tax rates will raise revenues without any attendant adverse effects on economic growth, job creation, or standard of living.
http://www-hoover.stanford.edu/publications/epp/epp68.html
AS