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More Evidence That the Trump Tax Cuts Did NOT Cause the Biden-era Trillion Dollar Deficits

Biden keeps claiming that the reason the deficit reached nearly $2 trillion last year and is expected to stay well above $1 trillion annually for the next decade, is the “Trump tax cuts for the rich.” It’s a good line that resonates with some voters.  Too bad it is all false.

The Trump tax cuts created more jobs, more economic activity, more investment in the U.S., and… an unexpectedly high rate of tax revenue growth.

Preston Brashers, a Research Fellow at the Heritage Foundation, has compared how much revenues from 2018-27 were expected after the tax cut passed, and the more current estimates based on the tax collections that have already come in through 2022.

He finds that so far tax collections are running at a pace $1.7 TRILLION higher than forecast.  Even more amazingly, the revenues are now coming in at a pace some $600 billion higher than CBO predicted over the period 2018-27 with NO tax cut at all.

How did CBO get it so wrong. They still use “static revenue analysis” that fails to take account of the positive economic impact of the tax cuts.  They don’t believe in Laffer Curve effects.  We won’t say the Trump tax cuts paid for themselves, but we know for certain that they were a major economic stimulus.

Biden’s promise to repeal every provision of the Trump tax cuts would be like shoving Quaalude depressants down the throat of the American economy.

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