The Congressional Budget Office’s May 2022 forecast shows that the government now expects to bring in more tax revenue in the decade following the 2017 “Trump tax cuts” than it had projected prior to the December 2017 passage of tax reform.
It doesn’t look like the tax cuts — which government scorekeepers said at the time would cost $1.5 trillion over 10 years — have been anything like the fiscal nightmare that some on the left would lead us to believe.
In March, Speaker of the House Nancy Pelosi, D-CA, called the 2017 Trump tax cuts a $2 trillion “GOP tax scam.”
Sen. Bernie Sanders, I-Vt., accused Republicans of hypocrisy for supporting the tax cuts but opposing Congress’ massive spending spree.
The Biden White House issued a press release claiming “the Trump tax cuts had added $2 trillion to deficits over a decade.”
But the numbers tell a different story. Despite the political rhetoric, tax revenues are up.
Adjusting the forecasts to actual 2022 dollars, prior to the tax cuts the government projected $40.7 trillion of income tax, corporate tax, and payroll tax revenues between 2018 and 2027. The latest budget forecasts project $41.3 trillion of revenues for that period.
Instead of reducing revenues by $1.5 trillion, the latest forecasts suggest tax revenues will come in $570 billion higher than expected.
What about the corporate tax cuts? Surely cutting the corporate tax rate from 35% to 21% must have dramatically reduced corporate tax revenue?
Not according to the government budget numbers.
The government now expects to bring in $3.8 trillion in corporate tax revenues between 2018 and 2027, almost identical to the $3.9 trillion forecasted prior to the tax cuts. Moreover, since taxes don’t exist in a vacuum—and the corporate tax reform propelled higher income growth and therefore higher income taxes and payroll taxes—the corporate tax reform likely paid for itself.
https://www.washingtonexaminer.com/...e/the-numbers-are-in-trumps-tax-cuts-paid-off
It doesn’t look like the tax cuts — which government scorekeepers said at the time would cost $1.5 trillion over 10 years — have been anything like the fiscal nightmare that some on the left would lead us to believe.
In March, Speaker of the House Nancy Pelosi, D-CA, called the 2017 Trump tax cuts a $2 trillion “GOP tax scam.”
Sen. Bernie Sanders, I-Vt., accused Republicans of hypocrisy for supporting the tax cuts but opposing Congress’ massive spending spree.
The Biden White House issued a press release claiming “the Trump tax cuts had added $2 trillion to deficits over a decade.”
But the numbers tell a different story. Despite the political rhetoric, tax revenues are up.
Adjusting the forecasts to actual 2022 dollars, prior to the tax cuts the government projected $40.7 trillion of income tax, corporate tax, and payroll tax revenues between 2018 and 2027. The latest budget forecasts project $41.3 trillion of revenues for that period.
Instead of reducing revenues by $1.5 trillion, the latest forecasts suggest tax revenues will come in $570 billion higher than expected.
What about the corporate tax cuts? Surely cutting the corporate tax rate from 35% to 21% must have dramatically reduced corporate tax revenue?
Not according to the government budget numbers.
The government now expects to bring in $3.8 trillion in corporate tax revenues between 2018 and 2027, almost identical to the $3.9 trillion forecasted prior to the tax cuts. Moreover, since taxes don’t exist in a vacuum—and the corporate tax reform propelled higher income growth and therefore higher income taxes and payroll taxes—the corporate tax reform likely paid for itself.
https://www.washingtonexaminer.com/...e/the-numbers-are-in-trumps-tax-cuts-paid-off
