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Politics & Religion / Tax Rate Cuts Brought In More Revenue, $1.7T Above Estimate
« on: Today at 04:50:12 PM »
New Study confirms what we already knew:
Source CBO / Compiled by Heritage Foundation Economist
More Evidence That the Trump Tax Cuts Did NOT Cause the Biden-era Trillion Dollar Deficits
"Biden keeps claiming that the reason the deficit reached nearly $2 trillion last year and is expected to stay well above $1 trillion annually for the next decade, is the “Trump tax cuts for the rich.” It’s a good line that resonates with some voters. Too bad it is all false.
The Trump tax cuts created more jobs, more economic activity, more investment in the U.S., and… an unexpectedly high rate of tax revenue growth.
Preston Brashers, a Research Fellow at the Heritage Foundation, has compared how much revenues from 2018-27 were expected after the tax cut passed, and the more current estimates based on the tax collections that have already come in through 2022.
He finds that so far tax collections are running at a pace $1.7 TRILLION higher than forecast. Even more amazingly, the revenues are now coming in at a pace some $600 billion higher than CBO predicted over the period 2018-27 with NO tax cut at all.
How did CBO get it so wrong. They still use “static revenue analysis” that fails to take account of the positive economic impact of the tax cuts. They don’t believe in Laffer Curve effects. We won’t say the Trump tax cuts paid for themselves, but we know for certain that they were a major economic stimulus.
Biden’s promise to repeal every provision of the Trump tax cuts would be like shoving Quaalude depressants down the throat of the American economy."
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President Biden in State of the Union 2024:
"The last administration enacted a $2 trillion tax cut overwhelmingly benefit the top 1 percent — the very wealthy"
[Doug] - But that's not true. They didn't 'cut taxes' by one cent. They cut cut tax rates. Taxes measured in dollars, the measure he chose, didn't go down at all. Tax revenues went up. It's measurable, provable and now proven. They went up more than they were projected to go up without the tax rate cuts. It's not an opinion; it's fact.
The tax rate cuts didn't "overwhelmingly benefit the top 1 percent". The top 1% were already rich, it hardly changed their lives at all except maybe they didn't have to move their headquarters to other countries. The tax rate cuts benefited the economy, the workers, the country.
Point of clarity on the Laffer Curve. Not all tax rate cuts bring in more revenue, no one says they do. In this case, tax rates were egregiously high, chasing productive investments out of the country. That's how lower rates brought in greater revenues.
I'll stop preaching on this once the deniers stop denying.
Source CBO / Compiled by Heritage Foundation Economist
More Evidence That the Trump Tax Cuts Did NOT Cause the Biden-era Trillion Dollar Deficits
"Biden keeps claiming that the reason the deficit reached nearly $2 trillion last year and is expected to stay well above $1 trillion annually for the next decade, is the “Trump tax cuts for the rich.” It’s a good line that resonates with some voters. Too bad it is all false.
The Trump tax cuts created more jobs, more economic activity, more investment in the U.S., and… an unexpectedly high rate of tax revenue growth.
Preston Brashers, a Research Fellow at the Heritage Foundation, has compared how much revenues from 2018-27 were expected after the tax cut passed, and the more current estimates based on the tax collections that have already come in through 2022.
He finds that so far tax collections are running at a pace $1.7 TRILLION higher than forecast. Even more amazingly, the revenues are now coming in at a pace some $600 billion higher than CBO predicted over the period 2018-27 with NO tax cut at all.
How did CBO get it so wrong. They still use “static revenue analysis” that fails to take account of the positive economic impact of the tax cuts. They don’t believe in Laffer Curve effects. We won’t say the Trump tax cuts paid for themselves, but we know for certain that they were a major economic stimulus.
Biden’s promise to repeal every provision of the Trump tax cuts would be like shoving Quaalude depressants down the throat of the American economy."
-------------------------------------------------------------------------------
President Biden in State of the Union 2024:
"The last administration enacted a $2 trillion tax cut overwhelmingly benefit the top 1 percent — the very wealthy"
[Doug] - But that's not true. They didn't 'cut taxes' by one cent. They cut cut tax rates. Taxes measured in dollars, the measure he chose, didn't go down at all. Tax revenues went up. It's measurable, provable and now proven. They went up more than they were projected to go up without the tax rate cuts. It's not an opinion; it's fact.
The tax rate cuts didn't "overwhelmingly benefit the top 1 percent". The top 1% were already rich, it hardly changed their lives at all except maybe they didn't have to move their headquarters to other countries. The tax rate cuts benefited the economy, the workers, the country.
Point of clarity on the Laffer Curve. Not all tax rate cuts bring in more revenue, no one says they do. In this case, tax rates were egregiously high, chasing productive investments out of the country. That's how lower rates brought in greater revenues.
I'll stop preaching on this once the deniers stop denying.