Via Don Luskin, It now looks like the 2003 capital gains tax rate reduction will yield some $100 billion in "unexpected" revenues, at least if you go by CBO estmiators. This over a period of just three years. CBO had estimated that 2006 capgains revenue would be less than 2002 levels -- $54 billion versus $57 billion. But in addition to higher revenues the last few years, FY2006 receipts could reach $98, close to double CBO's original projection that relied on its perpetually wrong static model.
Of course, these numbers only reflect the windfall to government accounts, not the more important rise in the accounts of American investors.
-Bret Swanson
P.S. Also watch Luskin hilariously tweaking Paul Krugman for predicting "nine out of the last zero recessions."
