results in added personal income and additional tax revenue from the higher incomes and payroll. Federal excise taxes and tariffs also rise with the added growth in income and consumption. State and local governments benefit from higher sales and income tax receipts which help their budgets as well. By contrast, the lowering of the capital gains tax rate in 1978, 1981, and 1997 may not only have raised incomes and general revenues, it may also have raised revenues from the capital gains tax itself. The then-existing rates were above the revenue maximizing capital gains tax rate, which appears to be a bit under 10 percent (looking only at capital gains revenues). [7] The reduced rate raised the value of capital (boosting the amount of gains to be reported) and encouraged people to take gains earlier than otherwise. Such a rate cut is one of the few cases where the tax's own revenue may rise with a rate cut. In the Romney plan, the rate cut to zero for the middle brackets would reduce capital gains collections but raise other revenues due to increased economic activity and income. Counting all types of income and tax revenue, the globally revenue maximizing capital gains rate is probably zero. Previous Pro-growth Policies Proved that "Yes We Can" At the present time, the economy is about 12 percent below its long term growth trend. There is no doubt that the economy has the "room" to expand an additional 7 or 8 percent over the next