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Chart 2: Wealthy Taxpayers Rely Less on Wage and Salary Income Than Any Other Income Class Chart 3: Changes In Tax Rates Have Little Effect on Revenues Chart 4: Rich Pay More Following 1920s Tax Cuts Chart 5: Rich Paid More Under 1960s Kennedy Tax Cuts Chart 6: Reagan Tax Cuts Generated 31% More Tax Revenue From the Wealthy Chart 7: Higher Tax Rates, Lower Revenue Introduction One of the most important fiscal policy debates developing in this election involves the question of whether changes in tax policy have supply-side effects. In other words, will lower tax rates increase economic growth, resulting in more jobs, higher wages, and bigger profits? If the answer is yes meaning that lower tax rates cause taxable income to rise it is reasonable to argue that a tax cut will be at least partially self-financing. The extent to which increased revenue from a bigger tax base helps offset the revenue loss from lower tax rates then becomes an empirical question. This is what st

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