Finally, Rudy Giuliani gives a less-than-absolutist answer on the question of whether tax cuts raise revenues. “The reality is some tax cuts lead to revenues, some tax cuts don’t lead to revenues,” he says. That’s a big change from his previous stark statements .
“Let me give you an example,” he says. “If you cut the corporate tax from 35 percent to 30 percent,” that will stimulate the economy and raise revenue. “Our corporate tax is second highest in the world.” He doesn’t give examples of tax cuts that wouldn’t raise revenue, but at least he acknowledges their existence.
The most important thing, he says, is to “guard against overtaxing, overspending, overregulating, and oversuing.”