President Trump's Tax Cuts Worked. Here's Why.
Short Link: http://www.jsmtech.org/trump-tax-cuts-worked
Read Time: 2 min
In my last post, I talked about how I discovered my econ 101 notes on increasing minimum wage. I also found my notes on how much President Trump’s tax cuts helped the US economy pre-COVID. I thought I’d share those as well!
Trump’s Tax Cuts Worked
I've been repeating this a lot, but we need to reduce spending and cut taxes. Let's look at what happened when President Trump passed his tax cuts. According to the CBO, adjusted gross incomes increased by 5.7 in 2019, the biggest jump in several years. Taxpayers who made between $40,000 and $50,000 received a 15% tax reduction. Was this at the expense of losing revenue? Not at all, we increased the amount of money we took in. In 2018, federal revenue increased by $10 billion, and in 2019 by $130 billion. 2020 was projected to be even more of an increase before COVID, but our economy is back on the rise so that may again be the case. Has our deficit increased? Yes, but that's exactly why we need to reduce our spending. Tax cuts have been proven to work. In fact, let's look at what happens when we increase taxes. President Bush's tax increase deal with Democrats in 1990, according to a study done by Stephen Moore, added $500 billion to our debt. Taxes cuts work, we need more, but cutting our taxes won't do anything until we cut governmental programs (military, welfare, healthcare, etc). They all need to be cut because, even if they might have benefits, America has never and can no longer afford them.