The numbers are in, and Trump's tax cut didn't reduce the deficit – despite his many promises

We are running a massive deficit because the tax cuts are not paying for themselves.

 

Well to the authors defense, when fishing for a certain genre its logical to use a bait they enjoy

 

When the economy has fully recovered from an economic recession where the government was forced to spend a large amount of money to avoid financial collapse, the government should recover its own coffers.

Not drain the rest to fill the swimming pools of the rich.

 

We have been thru this so many times.
Take out the increases from before the tax cuts and the taxes paid on 2017 income in April 2018 and see where you come out.

 

For my edification, what impact would that have on his talking point?

 

No, it should cut spending back, unless you are ready to admit that the Obama economy was fake and only held up by gov spending

 

His claim was that the tax cuts were responsible for record income tax revenues. They were not.

 

It was absolutely initially propped up by government spending which is why the deficit decreased every full year that Obama held office. We need to be paying down the debt so that when the next recession we can manage it - instead the narrative is now screw the deficit let’s make the super rich, richer.

 

RECORD INCOME TAX COLLECTIONS.... is that big enough for Leftists like you? Or do you required even more than ever collected before?

Do you realize how ridiculous your position is coming off? Foolish? Petty?

 

You are not a business owner, are you? Or a corporate officer or an accountant, I am guessing.

Back in 2016 I believe, the US had the highest corporate tax rates among major economies at 38.9%. Back in the 60's, it was as high 52.8%. Even if you factor in deductions and expenditures, we still ranked 3rd.

Now we are down to 21%.

Spending all the money you have in your company to avoid taxes and higher employees would be suicide. Corporations need capital and wealth to float them through lean times as well as to increase production when needed. This was just one reason why lowering the corporate tax was so important. Companies need to be able to hold on to money and run in the black without the government seizing their money with high taxes.

The CBO projects that even with the Trump tax cuts in place, taxes as a share of GDP will steadily rise over the next decade, and will be higher than the post-World War II average. But bringing in more tax revenues doesn't help if spending goes up even faster. And that has, unfortunately, been the case, as the GOP-controlled Congress has gone on a spending spree. Look at it this way. Tax revenues are up by $31 billion so far this fiscal year compared with last year. But spending is up $115 billion.

In other words, the entire increase in the deficit so far this year has been due to spending hikes, not tax cuts. It's the spending.

 

Next recession?
There should be no eminent recession if Obama fixed things right.
It's not the job of the tax payer to prop up the economy for you.

 

They all know the economy will implode if we cut spending back, especially as the fed raises rates.

It should have been allowed to reset in 08.
We'd be recovered by now with a much lower cost of living. Instead we have artificially high prices everywhere, which can only be sustained with more debt. A losing recipe

 

So Bush and Trump should have let the auto manufacturers, their suppliers, their manufactured and the banks fail.

That seems like a great plan!
Too bad we don’t have people like you running the country! (That’s scarcasm by the way)

 

Oh, you like propping up dead companies and keeping their crappy products overpriced.

 

During normal conditions, no.
But the economy was already crumbling because of greed - letting more people lose their jobs may have been a death blow.

 

It's never a death blow.
You buy the crap the bankers spewed?

 

Fake? No. It was an economy that was on the verge of financial collapse and required government spending in order to avoid that catastrophe.

Why does the current economy require even more spending and less revenue?

 

So it went through the roof because one source of tax revenue reached a new record? In an economy that is larger than at any point in history because of inflation, do you get why that is a really poor definition of "through the roof?"

 

But it was fixed, right?

It shouldn't require any spending.
Why dont you want to cut any?

 

Your apparently not either. Do you know what an ETR is ?

Corporations do NOT pay the highest tax rates in the world. It’s just NOT true. Their effective tax rates are around 20-23% Pretty much the same as the ETR’s for personal rates. And that rate is raised significantly by smaller corporate entities. Most large multinational corps pay little to no tax.

https://www.reuters.com/finance/stocks/financial-highlights/VZ.N

Click the link above and look at Verizons public earnings statement. Scroll down to ther 5yr Effective tax rate and you will see that its -28%.

It has become the montra form the right lately that corporations pay too much tax, when in reality, most of the largest corps pay little to nothing, and that doesnt account for all the state and local tax breaks they are given. Read David Cay Johnston’s book “Free Lunch” sometime. It will amaze you.

And FTR, I agree that spending is out of control. But keep in mind, that the CBO accounts for tax breaks as spending because most tax breaks are the same as a “refund”. So its not actual “spending” in the traditional sense that is driving up the deficit. The Trump tax breaks are a big part of that “spending”

 

Yea, well aware of an ETR, but where do you figure it's a simple fix to just go out and hire employees if you want don't want to pay taxes? That is insane. There are a ton of other ways to keep your money and away from the government.

I'll leave the rest alone because we'll just disagree. I don't think you quite understand how corporations move money all over the place and how the cuts and removal of regulations have been booming the economy and creating huge amounts of wealth and jobs.

 

Do you mean that some GULLIBLE people actually believed a Serial Liar (like Trump)?

 

Where oh where did you come up with that one?
Inflation was a very low 1.4% under Obama. Trump managed to increase it 50% in his first year.

 

Wrong, democrats love war just as much as the republicans do. The anti war democrat left the United States a long time ago and hasn't been seen since 1969.

They also like law enforcement but mostly to protect their cushy gated communities in the inner cities.

 

Neither party is going to cut spending, both parties have decided that debt ceilings are unnecessary.