• itsonlygeorge@reddthat.com
    link
    fedilink
    arrow-up
    4
    arrow-down
    1
    ·
    1 year ago

    “The increase in the deficit last year was largely caused by a sharp fall in tax revenues…”

    So, this is the beginning of the Trump era tax cuts for the wealthy and corporations. They have been using this as an excuse to cut down social programs, cut funding to various government departments, and shutdown the government with their petty tantrums.

    • JasSmith
      link
      fedilink
      arrow-up
      2
      arrow-down
      1
      ·
      1 year ago

      Tax revenues increased after those tax cuts. It will help to read about the Laffer curve. There is a kind if elasticity of demand for tax revenue. When raising taxes, some proportion of economic activity, including people working, is reduced. This can lead to a net decrease in tax revenue. The opposite is also true. The Laffer curve stipulates that there is an optimal tax efficiency on the vertex.

      Of course this has nothing to do with fair distribution. It simply means that, paradoxically, higher taxes would reduce the size of the federal budget.

        • JasSmith
          link
          fedilink
          arrow-up
          1
          ·
          edit-2
          1 year ago

          Even if it results in less tax revenue, and poor people becoming even poorer? I don’t agree. I think we should help poor people, not hurt them.

          • itsonlygeorge@reddthat.com
            link
            fedilink
            arrow-up
            1
            ·
            edit-2
            1 year ago

            P.L. 115-97 permanently reduced the 35% CIT rate on ECI to a 21% flat rate for tax years beginning after 31 December 2017.

            https://www.pgpf.org/blog/2023/04/six-charts-that-show-how-low-corporate-tax-revenues-are-in-the-united-states-right-now

            We changed the corporate tax rate in 2017 and 2014 and have been collecting less and less taxes. Since corporations l are people, and they make the most amount of taxable income, we should be charging them more! They use public services such as roads and cause more pollution etc we should not be subsidizing their use.

            • JasSmith
              link
              fedilink
              arrow-up
              1
              ·
              1 year ago

              We changed the corporate tax rate in 2017 and 2014 and have been collecting less and less taxes.

              As I explained above, this is not correct. In fact, the opposite is true. Tax revenue continues to trend up. They did not not decrease after 2014 or 2017.