Posted on 11/18/2019 8:26:55 AM PST by SeekAndFind
Economic ignorance. Lowering marginal rates INCREASES revenue. That happened in 1962, 1984, 2002 and 2017.
President Obama’s FICA tax cut is still in effect I believe and will require progressively larger future Social Security payment reductions.
President Obama’s FICA tax cut is the most hard-hitting blow the federal safety net has ever received. People my age might see Social Security payout reductions of up to about 12%[8% employee/employer -> 6% employee/8% employer][16% total -> 14% total].
Yup, the last one stimulated the economy and increased revenue so much that we have a trillion dollar deficit.
You said it yourself; what needs to be discussed is serious spending cuts, starting with the socialistic farm subsidies meant to offset the tariff. But that's not what this article is about. It's about another tax cut which, combined with ever higher increases in spending, will lead to ever higher deficits. And if the economy goes into a downturn then you're talking two or maybe three trillion dollar deficits.
Yes but they're talking about lowering taxes not raising them.
Actually it expired five or so years ago
“Economic ignorance. Lowering marginal rates INCREASES revenue. That happened in 1962, 1984, 2002 and 2017.”
The art of plucking taxpayers to get the maximum amount of tax is complex.
Our federal debt of $23 trillion is evidence that post-Kennedy tax cuts may not have been justified.
The Laffer Curve indicates there is a sweet spot for revenue. Laffer Curves change over time.
The Reagan tax cuts didn’t pay for themselves. They were made possible by the growing retention of married women in the workforce.
Revenue may grow due to other factors too, such as related interest rate cuts made to keep the federal debt from exploding even faster.
“President Obama’s FICA tax cut is still in effect I believe and will require progressively larger future Social Security payment reductions.”
It was for two years 2011,2012 only. My mistake.
See comments at:
https://www.ssa.gov/OACT/ProgData/taxRates.html
While I am a fan of tax cuts, it’s more about reducing the spending and the scope of Government.
Don’t be such a downer. Trump’s in the White House and putting in conservative Supreme Court justices. The Dems control only the House. We already have very close to one-party rule...by the GOP. I’m not saying they’re all true conservatives in there but if there’s one party that’s getting shut out in the cold it’s the Demonrats.
Voters really, really like tax cuts.
I don't need a tax cut. I need President Trump to veto any budget that spends more than it takes in. The national deficit has gone nowhere but up since 1983 and as a percentage of GDP it has been on the increase since 2017.
https://www.thebalance.com/national-debt-by-year-compared-to-gdp-and-major-events-3306287
No nation with a national debt higher than its GDP can maintain First World status for long. The higher our debt is, the more money we owe to China, the weaker our international position is.
If we are going to be a fiscally irresponsible nation with $23 trillion in Federal debt, we might as well let people keep more of their own money in the process.
So we just give up on fixing the deficit? It's okay if America becomes a Third World nation as you get your tax cut? The piddling amount of money we would get from tax cuts would be swallowed up and then some when the American economy collapses. No nation whose debt exceeds its GDP maintains First World status for long. We needed to start fixing the deficit 10-20 years ago, not cutting revenue while maintaining or increasing spending.
So, let’s see how wonderful it becomes if President Trump loses the election. The Democrats will love spending our money.
Glad you don’t need a tax cut. I do.
(And I agree with you that government spending has long been out of control. But my first thought at this point is President Trump needs to win in 2020.)
They absolutely increased revenue, almost doubled revenue!!!
Why do you think Trump will lose in 2020? The economy’s humming along just fine and Americans never change presidents in the middle of a good economy. The Dem candidates are mostly crazy and/or incompetent and should be easy to defeat.
So the question is not if Trump will win in 2020 but what his priorities should be. He said he would pass tax cuts in his first term and he has done just that. He also said he would address the deficit in his first term. He has not done that. He said the tax cuts would pay for themselves. Clearly they have not done so. All very well to say that Trump needs to win in 2020 but we also need results. I just don’t see how America can stay great if our fiscal situation is a basket case like Argentina or Italy. We aren’t there yet but unless we do something soon we will be.
My taxes actually went up a little bit after Trump’s tax cuts passed because I could no longer claim as many deductions. I would have been fine with this if it had helped reduce the deficit but it didn’t. If a family has racked up tens of thousands of dollars of credit card you don’t tell them to reduce their income. You tell them to cut their spending and/or work longer hours to bring in more money. Tax cuts now just mean massive tax increases later when the fecal matter hits the ventilation device.
How much voter fraud took place 2016 and may happen again? We barely escaped Hillary being elected. I’m not as confident as you are for 2020. I wish it was a slam dunk as you propose.
No doubt government spending is out of control. But I would hate even worse for a Democrat to win in 2020, take away what small tax cuts we got, reverse the good economy, all the while increase spending and send us closer to socialism with their political agenda. And on top of it and worst of all, they would push forward through the Executive Office their efforts to kill babies in the womb (and even out of the womb).
I hate the bloated size of government. I hate government spending (much of it wasteful also). But the harm done by a Democrat victory in 2020 would be even more disastrous.
Let’s get President Trump re-elected, and then hopefully he will continue with his promises. He has done so much good already.
Meanwhile CR after CR w/o a budget and debt ceiling cancellation:
Look at the GDP figures for any given quarter in recent years. In the midst of all these discussions from political figures and TV business analysts who quibble about whether a 2% growth rate is acceptable, a 3% growth rate is sustainable, etc. ... the dirty little secret in the numbers is that our GDP growth figures are driven heavily by one "industry sector": a 10%-15% annual growth rate in the category known as "Government, Non-Defense."
So that's where we are. I can't fix that.
We needed to start fixing the deficit 10-20 years ago, not cutting revenue while maintaining or increasing spending.
Has there even been a year in my lifetime where overall tax revenues actually DECLINED?
Has there even been a year in my lifetime where overall tax revenues actually DECLINED?
Tax revenue declined 1970-1971, 1982-1983, 2001-2003, and 2007-2009.
https://www.thebalance.com/current-u-s-federal-government-tax-revenue-3305762
Look around this thread. I am not the only FReeper who prefers a balanced budget over more tax cuts. If even some conservatives are opposed to more tax cuts then that may not be the wisest campaign strategy for 2020.
I understand wanting to prioritize winning in 2020. But if we don’t balance the budget and slide into Third World status, as we will no matter who is President, then what have we won really?
Even if we had a balanced budget we’d be heading towards Third World status because of the massive illegal invasion from our southern border. At least President Trump is trying to stop or slow it way down. A Democrat President would not try to stop it and would most likely increase it.
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