China Joe Biden Tax Proposal

[Belsnickel]

(10-09-2020, 03:46 PM)Luvnit2 Wrote: Come on Fred, you are a smart guy and if you looked it up after Trump cuts, the US treasury took in more MONEY, NOT LESS. We have a spending issue, but tax cuts were paying for themselves, that is not BS, that is a fact. Look it up.

So, this is misleading. The overall dollar amount of money increased, but that is explained by an increase in GDP that was trending upwards at the time. For FY18, the first year for the impact of the tax act, the revenue increased from FY17 but as a percentage of GDP the receipts from taxes decreased. So we saw a negative impact on the revenues from the tax bill, plus we saw increased spending which meant larger deficit by dollar amount year-on-year and a larger deficit by percentage of GDP.

https://www.cbo.gov/system/files/2018-11/54647-MBR.pdf

Edit to add: it should be noted that while GDP did increase, the growth maintained the same trend from FY16 to FY17 and slowed between FY18 and FY19, meaning the tax act could not be seen as having a causal effect on the GDP in either way, really.