Welcome to the upside down world of Victor Davis Hanson, retired professor of the classics turned neoconservative propagandist. His columns are carried every week in the local newspaper. They are works of artifice, relying on half-truths, omissions and ideological assumptions. I've been rebutting them every week for several months. You can find my latest response here
http://www.fresnobee.com/2011/06/10/2422653/we-should-learn-from-europe.htmlHere's my response to the snippet you quoted.
Hanson takes the tax fairy myth - the repeatedly proven false idea that tax cuts always produce an increase in government revenue <a href="http://www.politifact.com/truth-o-meter/statements/2011/apr/19/joe-walsh/rep-joe-walsh-said-every-time-weve-cut-taxes-reven/"><4></a>, <a href="http://www.capitalgainsandgames.com/blog/bruce-bartlett/1864/republican-tax-nonsense"><5></a>, <a href="http://www.factcheck.org/taxes/supply-side_spin.html"><6></a>, <a href="http://www.cbpp.org/cms/?fa=view&id=165"><7></a> - and flips it around to assert that higher taxes always produce a decrease in government revenue. He attributes revenue decline to tax evasion and points to Italy as an example, but he ignores the deindustrialization of Italy as well as an expanding cash economy and shoddy banking practices as factors of decreased revenue and tax evasion in Italy and other European countries <a href="http://www.economist.com/node/18780853?story_id=18780853"><8></a>, <a href="http://www.ft.com/cms/s/0/efc3510e-9214-11e0-9e00-00144feab49a.html"><9></a>, <a href="http://www.economist.com/node/16792848"><10></a>.