Its official: despite the constant talking points from the left that the Trump’s tax cuts only benefit the rich and will only increase the federal deficit, it turns out that the federal government actually took in more money after the Trump tax cuts were implemented. And no, they didn’t only benefit the rich.
The latest Congressional Budget Office report released earlier this month shows that the federal government collected $4.9 trillion in revenue last year. That was up by almost $1.5 trillion since 2017, the year before the tax cuts became law. This is a 40% increase in revenue.
Economist Stephen Moore stated that “I compared these numbers with the estimates of what the Trump tax cuts were expected to “cost.” Instead of an expected $1 trillion revenue “loss,” the tax receipts over this period were almost precisely what they would have been if we didn’t cut 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.”
The report also shows that through the first three years of the tax cuts taking effect, the share of taxes paid by the wealthiest 1% also rose.
This isn’t unusual for the federal government to take in more money while cutting taxes. The same thing happened under JFK in the 1960s and Reagan in the 1980’s.
Democrats now want to let these tax cuts expire.