--- title: "Meaning & Key Takeaway of: ... economists recognize that, other…" description: "\"“... economists recognize that, other things equal, cuts in tax rates reduce tax revenues in percentage terms by less than the tax-rate reductions. Sim..." image: "https://sms4smile.com/quotes/i/d57/campbell-mcconnell-87792_economics_economists-recognize-that-other-things-e_2079090.jpg" --- # ... economists recognize that, other things equal, cuts in… ![“... economists recognize that, other things equal, cuts in tax rates reduce tax revenues in percentage terms by less than the tax-rate reductions. Similarly, tax-rate increases do not raise tax revenues by as much in percentage terms as the tax-rate increases. This is true because changes in…” quote by Campbell McConnell](https://sms4smile.com/quotes/i/d57/campbell-mcconnell-87792_economics_economists-recognize-that-other-things-e_2079090.jpg) [Download](https://sms4smile.com/quotes/i/d57/campbell-mcconnell-87792_economics_economists-recognize-that-other-things-e_2079090.jpg) [Open image](https://sms4smile.com/quotes/i/d57/campbell-mcconnell-87792_economics_economists-recognize-that-other-things-e_2079090.jpg) > ““... economists recognize that, other things equal, cuts in tax rates reduce tax revenues in percentage terms by less than the tax-rate reductions. Similarly, tax-rate increases do not raise tax revenues by as much in percentage terms as the tax-rate increases. This is true because changes in marginal tax rates alter taxpayer behavior and thus affect taxable income.”” [Campbell McConnell](https://sms4smile.com/quotes/author/campbell-mcconnell/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Tax rate changes affect revenue less than proportionally because taxpayers adjust behavior, altering taxable income. **In simple terms:** Tax cuts and hikes don’t change revenue as much as expected. Key Takeaway Consider behavioral responses when designing tax policy. Themes economics public finance behavioral economics policy design Mood analytical cautious Type academic policy brief When to use this quote - budget planning - legislative drafting - tax reform advocacy - economic modeling Key Concepts elasticity tax incidence revenue forecasting Questions to Reflect On - How might tax policy account for avoidance strategies? - What data best predicts taxpayer response? A Different Perspective Assumes rational behavior, ignoring loopholes. ★ ★ ★ ★ ★ No ratings yet [Cuts Tax](https://sms4smile.com/quotes/about/cuts-tax-464725/) [Economics](https://sms4smile.com/quotes/about/economics/) [Marginal Tax](https://sms4smile.com/quotes/about/marginal-tax-2352511/) [Rates Alter](https://sms4smile.com/quotes/about/rates-alter-4051967/) [Tax rates](https://sms4smile.com/quotes/about/tax-rates/) [Tax Revenues](https://sms4smile.com/quotes/about/tax-revenues-491401/) [Taxes](https://sms4smile.com/quotes/about/taxes/) ## Related quotes > [Marginal tax rates are the lowest they've been in generations, and all we can talk about is tax cuts.](https://sms4smile.com/quotes/patrick-mchenry/marginal-tax-rates-are-the-lowest-they-ve-been-in-generations-and-all/) [Patrick McHenry](https://sms4smile.com/quotes/author/patrick-mchenry/) > [I can't imagine an argument that says that raising marginal tax rates on high income people, many of whom are business owners, is a…](https://sms4smile.com/quotes/glenn-hubbard/i-can-t-imagine-an-argument-that-says-that-raising-marginal-tax-rates/) [Glenn Hubbard](https://sms4smile.com/quotes/author/glenn-hubbard/) > [What Governor Romney is proposing is an across-the-board cut in marginal tax rates for households, every household in America by 20 percent. 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That's why the rich pay such a low…](https://sms4smile.com/quotes/james-b-stewart/the-appreciation-of-capital-assets-is-already-taxed-at-an-extremely/) [James B. Stewart](https://sms4smile.com/quotes/author/james-b-stewart/) ## More by Campbell McConnell > [“Savings, remember, is the prerequisite of investment.”](https://sms4smile.com/quotes/campbell-mcconnell/savings-remember-is-the-prerequisite-of-investment/) [Campbell McConnell](https://sms4smile.com/quotes/author/campbell-mcconnell/) > [“... economic growth is driven by supply factors such as improved technologies and access to more or better resources.”](https://sms4smile.com/quotes/campbell-mcconnell/economic-growth-is-driven-by-supply-factors-such-as-improved/) [Campbell McConnell](https://sms4smile.com/quotes/author/campbell-mcconnell/) [Explore all 3 Campbell McConnell quotes ](https://sms4smile.com/quotes/author/campbell-mcconnell/) ## More Economics quotes > [Don't let's lose sight of what creates wealth. 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