Taxes just went up: Will the government make more money? YouTube video says no

Published: Monday, Jan. 7 2013 12:05 p.m. MST

In this Feb. 11, 2011, file photo Rep. Tom Price, R-Ga., speaks at a Conservative Political Action Conference (CPAC) in Washington. "Don't bend, stay the course, stand firm," Price has said in summing up the feedback in July from constituents in his heavily Republican district north of Atlanta. He said calls and emails are running about 50-1 urging him not to increase taxes as part of any debt compromise. A YouTube video says increasing taxes generally doesn't increase government revenue anyway.

Alex Brandon, The Associated Press

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To balance the budget, Congress raised taxes on the highest earners in America, but a YouTube video by Learn Liberty posits that raising taxes doesn't necessarily increase government revenue.

Antony Davies, the speaker in the November 2012 video, says the way to increase revenue is to simplify the tax code, so people stop spending time and money to avoid taxes. Only a few specific taxes are correlated with higher revenue.

For instance, tax revenue rises when Social Security and Medicare taxes are increased, because those taxes are harder to avoid. But, the video says, higher rates on Social Security are linked to an increase in unemployment a year after they are raised, because it becomes more expensive for employers to hire.

EMAIL: alovell@deseretnews.com

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