When investors sell appreciated stock, it does get taxed and that does help the nation’s fiscal stance, which is worse than the 20 trillion dollars that’s out in public debt.
Tax cuts that stimulate growth do result in increased tax revenues that can pay off as much as 20% of the tax cut amount over time. Whether these particular tax cuts would lead to growth is harder to say. We are near full employment, the Fed is raising rates. If we started to see growth overheating they would just raise rates faster.
The main economic effect of the currently proposed tax cuts would likely be higher interest rates rather than higher GDP growth.
She’s wrong. Does not adequately account for revenue from a much larger GDP. The CBO also ignores this as it scores using static figures.
Reagan’s second year after tax cuts had 7+ percent GDP growth.
True. Plus, stock market gains help the retirement plans, mostly belonging to public employees and seriously underfunded.