I heard Rush Limbaugh say that Trump's tax cuts will actually lead to MORE tax revenue, like the Reagan cuts. I think this is something both parties get wrong. According to basic logic and the "Laffer Curve" tax revenue peaks somewhere around a 20-40% rate or so because once you get past a certain rate, overall economic activity is lower and you actually get less revenue despite the higher rate. But republicans think you can always cut rates and get more revenue, which is wrong because at some point rate cuts WILL lead to revenue cuts. On the other side democrats (and the CBO) always wrongly assume rate hikes will result in proportional revenue increases. For example if a rate of 40% nets 3 trillion, they assume a rate of 80% will net 6 trillion. Obviously that's wrong as well. In that specific case you'd definitely get lower revenues.
There's another factor here. These tax cuts if passed are temporary. We have 20 trillion in debt so it's very likely a future politician will raise rates. Businesses know this so it's less likely they'll invest in the US, knowing that rates may go up in the future.
Anyway my guess is that the Trump tax cuts will end up will less revenue, but not as much as the CBO predicts.
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