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Did the Tax Cuts and Jobs Act Pay for Itself in 2018?
Gwad
Member Posts: 2,855
in Tug Tavern
https://www.taxpolicycenter.org/taxvox/did-tax-cuts-and-jobs-act-pay-itself-2018
Were you surprised that the 2017 tax overhaul, commonly referred as the Tax Cuts and Jobs Act (TCJA), did not increase revenues in 2018? Probably not, but several prominent conservatives, including Republicans in the House and Senate, former Reagan economist Art Laffer, and members of the Trump Administration, would be disappointed if they looked at the data. They have repeatedly claimed that TCJA either increased revenues or will pay for itself.
In principle, a tax cut could “pay for itself” if it spurred substantial economic growth. Revenues would rise from the combination of higher wages and hours worked, greater investment returns, and larger corporate profits. Under this scenario, that “dynamic” effect would more than offset the entire “static” revenue loss of the tax cut.
TCJA, however, is not that tax cut. While some TCJA supporters are touting that nominal revenues were higher in fiscal year (FY) 2018 than in FY2017, that comparison does not address the question of TCJA’s effects. Nominal revenues rise because of inflation and economic growth. Adjusted for inflation, total revenues fell from FY2017 to FY2018 (Figure 1). Adjusted for the size of the economy, they fell even more.
Were you surprised that the 2017 tax overhaul, commonly referred as the Tax Cuts and Jobs Act (TCJA), did not increase revenues in 2018? Probably not, but several prominent conservatives, including Republicans in the House and Senate, former Reagan economist Art Laffer, and members of the Trump Administration, would be disappointed if they looked at the data. They have repeatedly claimed that TCJA either increased revenues or will pay for itself.
In principle, a tax cut could “pay for itself” if it spurred substantial economic growth. Revenues would rise from the combination of higher wages and hours worked, greater investment returns, and larger corporate profits. Under this scenario, that “dynamic” effect would more than offset the entire “static” revenue loss of the tax cut.
TCJA, however, is not that tax cut. While some TCJA supporters are touting that nominal revenues were higher in fiscal year (FY) 2018 than in FY2017, that comparison does not address the question of TCJA’s effects. Nominal revenues rise because of inflation and economic growth. Adjusted for inflation, total revenues fell from FY2017 to FY2018 (Figure 1). Adjusted for the size of the economy, they fell even more.
Comments
"And after refunds, the IRS collected about $93 billion more from individual American taxpayers than it did in 2017. Interestingly, that number stands close to the tax break amount that corporations received from the TCJA in 2018. Last year, big businesses paid $91 billion less in taxes than they had in 2017, prior to the new law’s passage. "
By the way I don't give a shit if revenues didn't rise fast enough for you
I kept more of my money
I LOVE how magically in HondoFS who believes in actual economics world revenues would have magically ramped up in 2017 to 2018 if we had kept the same government policy/tax structure from 2015 forward, even through they didn't actually ramp up during that actual policy.
HondoFS...it really is amazing how stupid you are at times...
#leverage
In other words, Gwad has referenced another Vox level, far left wacko source that publishes lies..
In review, the Tax Policy Center uses minimal loaded emotional wording in their research and is minimally biased. All research is factually sourced to credible sources of information. The TPC also has a blog that has a left leaning bias in story selection and wording. The blog is also properly sourced and there isn’t evidence of any failed fact checks. Overall, we rate the Tax Policy Center least biased in research and left-center biased as a whole, based on a blog that favors left leaning policy issues. This source is also high in factual reporting. (D. Van Zandt 11/2/2017)
HTH
And IKW
You have to love a nitwit liberal defending another nitwit liberal who posted a biased and liberal hit job by a far left leaning "think tank" and then posting another liberal opinion piece by a far left liberal saying that the liberal think tank is factual.
Whew!
There is a lot of liberal biased posting, researching, defending and then defending again going on in here. Its as if you libs didn't know there was any other sources but biased liberal ones.