Every time you cut short term capital gains revenues will go up if the cash in volume rises proportionally more than the rate cut, but the trend can easily fall off once all those that were previously holding off for the lower long term rate have cashed in. You then reach a steady state rate of long term versus short term investors which should depend in part on the relative difference in rates. Low short term rates encorage short term investment which I believe has in turn encouraged the kind of stock fraud that has become rampant. People no longer give a damn about mortgaging the future for this years profits because they don't plan to be around that long. Even a Republican should be able to understand that not planning for the long term is detrimental to American business and is not truly a pro-business stance.

If your claim that revenues increased is based solely on the short term impact of Reagan's cut or fails to take into account normal growth rates in GDP you have no facts to support your claim at all.

Regards,
Mark