What if tax cuts are actually...good for the economy?

We are told that keeping Trump’s tax rates the same or lowering them a little will cost the government trillions of dollars in the future.  This is the same false prediction that was given by the CBO and why Democrats voted against the bill in 2017.

What the public will never see, because the media doesn’t want them to see it, is actual numbers of actual federal individual income tax revenues for the years since the law passed. 

In Fiscal Year 2017, before the tax rate cuts took effect, individual income tax revenues totaled $1.6 trillion.

Here are the individual income tax revenues for the seven years after those tax cuts passed, and remember that FY 2020 and 2021 included COVID.  These numbers come from Google A.I.

FY 2018 1.7 Trillion

FY 2019 1.7 Trillion

FY 2020 1.6 Trillion

FY 2021 2.0 Trillion

FY 2022 2.2 Trillion

FY 2023 2.2 Trillion

FY 2024 2.5 Trillion

So why do we hear that Trump’s tax rate cuts cost the government trillions when it actually collected $2.5 trillion more in the first seven years after the rates were cut?  Because facts and results don’t matter when the media and other Democrats are advocating for a bigger and more powerful government.  They want to reduce the amounts that individuals and businesses are allowed to keep for themselves. 

The public is also told the intentional lie that the tax rate cuts benefited only the rich.  They benefited everyone.  And the rich pay tax rates much higher than the poor and middle class, contrary to Democrat talking points. 

The projections for FY 2025 are to collect $2.6 trillion in individual income tax expenses, which is $1 trillion more than when the 2017 rate cuts were passed.  They have obviously paid for themselves, unlike government spending programs.  The rising revenues clearly did not cause deficits.  When revenues go up, the only thing that can cause deficits is spending too much. 

Why would Democrats want to increase corporate rates and individual rates, which can cause tremendous damage to the purchasing power of people and businesses, when the lower rates generate so much additional revenue, especially when so many people are living paycheck to paycheck or borrowing to pay bills?  I can’t think of any legitimate reason.  The higher rates would certainly slow growth and encourage businesses to move to lower-tax-rate countries. 

So why does the CBO continue to predict that the tax rate cuts will cost trillions when the rate cuts under Reagan, George Bush, and Trump all generated large increases in revenues?  The only reason I can think of not to pay attention to historical facts is that they have implicit bias. 

The CBO over the years also tremendously underestimates the cost of spending programs, which is why the government has run up $36 trillion in debt while the “scorers” pretend many programs pay for themselves. 

They pretended Obamacare would pay for itself, and the costs have skyrocketed. 

They pretended the government taking over student loans would make a profit to pretend Obamacare was paid for.  There have been no profits.  The losses have been staggering.  They pretended the Inflation Reduction Act would pay for itself.  That was a pure joke. 

The swamp is deep!

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Image: pasja1000 via Pixabay, Pixabay License.

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