I came across a facinating article in the Wall Street Journal about Hauser’s Law. W. Kurt Hauser is chairman emeritus of the Hoover Institution at Stanford University.
“Under a tax increase, the denominator, GDP, will rise less than forecast, while the numerator, tax revenues, will advance less than anticipated. Therefore the quotient, the percentage of GDP collected in taxes, will remain the same. Nineteen percent of a larger GDP is preferable to 19% of a smaller GDP.”