indeed. Still fresh how GOP cried that Obama is spending us to oblivion. Then they did the same and worse (we were in good economic time). GOP for 2 years had all branches, pathetic what they have done. Tax cuts to upper echelon and tax increase to middle Class
Nope. When Obama took office in 2009, the federal budget deficit was $10.6 trillion. By the time he left office in 2017, the federal budget deficit had nearly doubled to $19.9 trillion. That's an increase of about 86%.
Presidents are increasing debt, problem is they will never feel personally the effect of a doomed economy one day. People do not realize, but forcing interest rates down keeps America from filling bankruptcy, does anyone think if interest rates jump up to 10% our economy will be the same? https://www.thebalance.com/national-debt-under-obama-3306293
Come on guys. Stop blaming the tax cut. Revenue increases after the tax and regulation cuts. In the first term, some huge spendings will be there like on the military and so on. I believe once the trade deals are sorted out, companies moved in and economy is booming, the deficit will decrease.
I can recall when bank passbook rates were 5.25% (and we thought that was lousy), money markets were 6-6.5% and government 30 yrs were 8.5%. The spending was done with modest constraints and we got along just fine. All this stupidly low interest BS is political greed*... so government can deficit-spend without us bitching too much. *And we will one day pay for it ... IN SPADES! But as you say, today's spenders don't feel the negative effects personally.
https://www.whitehouse.gov/briefing...its-double-investments-key-industries-future/ Didn't see one mention of Trump's actual budget position (per usual) on this thread....so here you go
Do Tax Cuts Increase Government Revenue? Mike Patton Mike PattonContributor Investing I cover the intersection of economics, politics and personal finance. This article is more than 2 years old. Turn on the television or radio, pick up a newspaper or magazine, and you're likely to find something on the subject of taxes. This debate is especially prominent as it relates to the federal deficit and debt. On one side is the argument that if you cut taxes government revenue will fall and the debt will expand. Others contend that cutting taxes stimulates the economy which, in turn, leads to an increase in government revenue. Who is correct? To answer this, let's journey back to 1913, the year the modern tax code was enacted. 1913 In 1913, the Sixteenth Amendment was ratified, giving the Federal government the authority to levy an income tax on individuals and businesses. Its design was "progressive" in that the tax rate rises as income rises. This assures that those earning a higher wage will pay a higher percentage. From 1913 to 1915, the highest marginal tax bracket was only 7.0%. This top rate reached 94% in 1945, the final year of WWII. Framing Today's Debate The real question today is: "How do changes in income tax rates affect federal receipts?" Clearly there are deductions and credits which also influence the result. But in the final analysis, the percentage that taxpayers pay is the key statistic. The following graph clearly reveals the answer. The red line represents the top marginal tax bracket while the blue line shows the total amount of Federal government revenue each year. There are two salient points here. First, as the graph illustrates, as tax rates declined, government revenue increased. Second, there is a strong negative correlation between the two. To review, correlation measures the relationship between two sets of data. The scale ranges from negative one to positive one. A correlation of positive one indicates that the two data sets move in concert with each other. A correlation of negative one indicates that as one set of data moves up, or down, the other moves in the opposite direction. Using the data from 1913 through the end of 2011, the correlation between the maximum marginal income tax bracket and total Federal receipts is a negative 0.50. In simple terms, when taxes are cut, Federal revenue has a very strong tendency to rise! And when taxes are raised, government revenue has a strong tendency to fall. Today In: Advisor Network uncaptioned The next time you find yourself engaged in this debate and someone tells you that you that taxes must be raised to pay down the debt, you can refer them to this article. In conclusion, as JFK, Reagan, and George W. Bush understood, reducing taxes has a stimulative effect on economic activity which leads to an increase in government reciepts. You can't argue with history!