The problem with this criticism of tax cuts is that it ignores the history of government spending. The twentieth century has witnessed an explosion in the scope of government. The solution to reducing deficits is not raising taxes but controlling spending. The critics of tax cuts view government's role as ever-expansive. The argument that tax cuts will harm the government treats government spending as sacrosanct while the family budget is seen as less important.
Revenues increase as the economy grows.
In Michigan, we have a good example of achieving tax cuts and balanced budgets. Even with the elimination of the shortfall, appropriations have grown an average of eight percent a year while Engler has been governor. It is a simple fact of economics that when you tax an activity you get less of that activity than otherwise have been the case. If the government taxes incomes, income growth will suffer. The results have been the same in New Jersey as in Michigan.