One of the most contentious issues from the debate on Wednesday night was whether or not Romney’s across-the-board tax rate cut would necessitate an increase in taxes on the middle class.  Obama insists that there simply are not enough tax deductions to eliminate to make up for the lost revenue, which means that either the deficit goes up or taxes have to go up for the middle class. 

I explained why Obama’s analysis was completely wrong in yesterday’s Nuze.  Then I scanned the media today today so see if I could find this explanation anywhere.  With one exception, The Washington Free Beacon, I could not.

Here, again, is the explanation:

Obama’s claim that there aren’t enough deductions to eliminate to pay the cost of Romney’s tax cut completely ignores … let me capitalize that … COMPLETELY ignores the fact that tax cuts often lead to INCREASES in tax revenue to the federal government.  Why?  Because when tax rates go down people change their economic behavior.  For instance, they might take money out of tax-free investments such as municipal bonds and put that money into growing a business.  Result?  Economic growth.

Here’s a brief history of what happened to federal revenue after large cuts in the tax rates:

• 1920’s rate cuts.  Federal revenues increased by more than 61 percent.  The share of the tax burden paid by the rich actually increased.  Led to an era known as “The Roaring 20’s”
• Kennedy tax cuts.  Resulted in a 62 percent increase in federal tax revenues.  Kennedy said “…it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut tax rates now.” 
• Reagan tax cuts.  Tax revenues increased by 99.4 percent after the Reagan cuts, and personal income tax revenues increased by 54 percent.  Again, the share of the income taxes paid by the top 10 percent jumped. 

Now Romney said that he was going to make sure that the amount of taxes paid by the wealthy would not be reduced.  I may disagree with that point, but the act is he can do that while cutting taxes.  The wealthy will change their economic behavior, they will produce more wealth, and even though their tax rates will be lowered, the new tax rate applied to their increased income will yield the same or more revenue to the federal government.

Try to find that analysis anywhere in the ObamaMedia.  Look for references to prior tax rate reductions which led to more government revenue.  When you find them send up a flare … but I’m not holding my breath.