Trump’s presidency was a boon for business in this country. And years after leaving office, he keeps on winning.
And Trump was handed this massive victory that has Democrats losing their minds.
Democrats spent the entirety of Donald Trump’s term claiming every success was a hold over from the Obama administration and every failure was all Trump’s fault.
Even though the stock market soared, despite doomsday omens from Leftist economists like Paul Krugman, the Left never wanted to give President Trump his due.
Meanwhile, Joe Biden has been at the helm of an administration overseeing massive inflation, disastrous foreign policy in Ukraine and Afghanistan, and rife with scandal over classified information.
And the last thing Biden needed was for Trump to be handed another victory while Biden’s drowning.
How many times has President Joe Biden or Senators Elizabeth Warren (D-MA) and Bernie Sanders (I-VT) slammed the Trump tax cuts as a “giveaway to the rich?”
Biden and congressional Democrats now want to allow key provisions of former President Donald Trump’s signature domestic achievement, the Tax Cuts and Jobs Act of 2017, to expire, notably incentives for American corporations to invest more in the United States.
We now have irrefutable evidence showing, five years after they went into force, the Trump tax cuts of 2017 increased revenue throughout this time span.
According to the most recent Congressional Budget Office estimate, released earlier this month, the federal government generated $4.9 trillion in federal revenue last year. This has increased by over $1.5 trillion since 2017, the year before the tax cuts were enacted.
In other words, revenue has increased by 40% in five years. The evidence from the first three years of the tax cut shows that the wealthiest 1%’s percentage of taxes paid increased as well. So much for this being a tax break for the wealthy.
Compare these figures to predictions of how much the Trump tax cuts were supposed to “cost.”
Instead of the anticipated $1 trillion revenue “loss,” tax receipts during this period were nearly identical to what they would have been if we had not lowered taxes at all. Remember, the projection in 2017 did not account for the two-year economic cost from COVID-19 lockdowns, which depleted the Treasury.
In other words, Trump’s tax cut had a massive Laffer Curve effect. With reduced tax rates, we achieved higher growth and larger tax payments.
This should come as no surprise. The same thing happened during Democratic President John F. Kennedy’s tax cuts in the 1960s and Republican President Ronald Reagan’s tax cuts in the 1980s. Lower interest rates and increased revenue.
None of this seemed to matter to the White House or House Democrats. They want to unilaterally undo a successful tax cut.
One of the most essential and successful aspects of Trump’s tax proposal was lowering the tax rate on American firms from 35% to 25% while removing special interest loopholes. This drew firms and jobs back to the United States, fueling the Trump economic boom.
The obvious question is, why are we running a $1.4 trillion deficit when tax receipts are at an all-time high?
Because, during Biden’s leadership, federal spending has risen to more than $6 trillion. Washington does not have a revenue shortfall. It has an issue with excessive spending. It’s almost as though Congress is screaming for assistance: Stop us before we waste more money.
Stay tuned to the Federalist Wire.
