Stephen Moore: It’s Official: Trump’s Tax Cuts Paid for Themselves

How many times has President Joe Biden or Senators. Elizabeth Warren (D-MA), Bernie Sanders (I-VT), criticize Trump’s tax cuts. “a giveaway to the rich”?

Biden and congressional Democrats want to repeal major provisions of the Tax Cuts and Jobs Act 2017 of former President Donald Trump’s domestic landmark, including the incentives for American companies to invest more here in the United States.

Now, we have undisputed evidence that the Trump tax rate reductions of 2017 are still in effect five years after they were implemented raised These revenues were generated over the same time period. Full disclosure: I should mention that I was a co-economist with Larry Kudlow, Arthur Laffer, and Kevin Hassett on this plan. It became effective on January 1, 2018.

According to the latest Congressional Budget Office report, $4.9 trillion in federal revenue was collected last year. This was up — ready for this? — almost $1.5 trillion since 2017, the year before the tax cuts became law.

Also, revenue was Up 40% in five years. In the three years prior to the tax cut, the evidence shows that the richest 1% paid the largest share of taxes. rose As well. It’s a tax giveaway to the wealthy.

These numbers were compared with my estimates of the Trump tax cuts expected to be. “cost.” Instead of an anticipated $1 trillion in revenue “loss,” Over this period, tax receipts were almost exactly what they would be if we hadn’t reduced taxes at all. And remember, that estimate in 2017 never anticipated the two-year hit to the economy from COVID-19 lockdowns — which depleted the Treasury.

Also, Trump’s tax cuts created a huge Laffer Curve effect. We saw higher growth, higher tax payments and lower tax rates.

This shouldn’t come as a surprise. This was the same as what happened in 1960s when Democratic President John F. Kennedy reduced tax rates and 1980s when Republican President Ronald Reagan reduced tax rates. More revenue and lower rates

This seems insignificant to either the White House nor congressional Democrats. They are determined to repeal a tax cut that has worked. This would be like firing a coach that wins every game.

One of the most important and successful features of the Trump tax plan was reducing the tax rate on American businesses from 35% — the highest in the world — to 25% while closing special interest loopholes. This resulted in the return of jobs and business to these shores, and helped fuel Trump’s economic boom.

The obvious question is: Why are we running a $1.4 Trillion deficit when we have such high tax payments?

Biden’s leadership has seen federal spending soar to $6 trillion. Washington doesn’t have any revenue problems. It has an issue with excessive spending. It’s almost like Congress is pleading with Congress for help: Stop spending again.

Stephen Moore is an economist at FreedomWorks and a senior fellow with the Heritage Foundation. His most recent book is “Govzilla: How the Relentless Growth of Government is Devouring our Economy.”

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