Tax.com columnist David Cay Johnston has breaking news: despite what you may be hearing from pundits and radical Republican politicians, tax revenues are plummeting because of tax cuts passed over the past decade. He writes:

Federal tax revenues in 2010 were much smaller than in 2000. Total individual income tax receipts fell 30 percent in real terms. Because the population kept growing, income taxes per capita plummeted.

Individual income taxes came to just $2,900 per capita in 2010, down 36 percent from more than $4,500 in 2000. Total income taxes and income taxes per capita declined even though the economy grew 16 percent overall and 6 percent per capita from 2000 through 2010.

Corporate income tax receipts fell 27 percent and declined 34 percent per capita, even though profits boomed, rising 60 percent.

Payroll taxes increased slightly overall, but slipped per capita because the nation's population grew five times faster than the number of people with any work. The average wage also declined slightly.

You read it here first. Lowered tax rates did not result in increased tax revenues as promised by politician after pundit after professional economist. And even though this harsh truth has been obvious from the official data for some time, the same politicians and pundits keep prevaricating. Some of them even say it is irrelevant that as a share of GDP, income tax revenues are at their lowest level since 1951, when Harry S. Truman was president.

No matter how many times advocates of lower tax rates said it, tax rate cuts did not pay for themselves, did not spur economic growth, did not increase jobs, and did not make America better off.

That last message is worth repeating:

No matter how many times advocates of lower tax rates said it, tax rate cuts did not pay for themselves, did not spur economic growth, did not increase jobs, and did not make America better off.

Johnston has tables and graphs and information to back up what should not be such a startling claim. As Johnston notes, we have a revenue problem.

The question is: will we recognize it in time?

Sam Seder had a must-listen interview with Johnston on yesterday's Majority Report (which is well worth a podcast membership description, in this blogger's opinion).

http://official.fm/track/217557?fairplayer=small&skin=307

Click above to listen to this important interview, or visit the Majority Report web site to learn more.

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