How Are Those Trump Tax Cuts Working Out For You?

Sen. Cory Gardner (R).

CNBC reports that they’re not working out so well for the nation’s bottom line:

The U.S. budget deficit widened another $119.7 billion, good for a 27% increase over a year ago, according to government figures released Monday.

Total outlays increased by 22.8% over last July as receipts grew 11.6%. For the year, receipts were up 3% in the October to July period, totaling $2.86 trillion, while expenditures were at $3.73 trillion, an 8% rise.

That brings the fiscal year deficit through July to $866.8 billion, a little over a year and a half after the Trump administration ushered through a $1.5 trillion tax cut that the White House has vowed would pay for itself. At this point last year, the deficit was $684 billion.

While it’s true that overall tax receipts are up with the strong economy we’ve enjoyed for most of the 2010s, the loss of the federal revenue growth that would have occurred were it not for the Trump tax cuts is directly responsible for a budget deficit headed over one trillion dollars this year–the inevitable result of tax cuts made with no offsetting cuts in spending. Spending cuts are the second act of the conservative “starve the beast” philosophy of deliberate fiscal crisis inducement–the part they don’t want to talk about while passing big tax cuts, but then in recent years has become too politically toxic to carry out as the harm those spending cuts would do to ordinary Americans is quantified.

Have voters seen this shell game played enough times to stop playing in 2020? We’ll have to see if repetition of this same tired tactic overcomes short attention spans. The one thing this situation cannot be called is fiscally responsible, and that’s the one thing Republicans are expected to be. Is it true that “deficits only matter when Democrats are in charge?”

If so, we can cut the proverbial crap.

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6 Community Comments, Facebook Comments

  1. unnamed says:

    Is it true that “deficits only matter when Democrats are in charge?”

     

    If you are a Republican, or get sucked into their shell-game.  And the so-called "tax-cuts" are a steaming pile of dog shit.  

  2. harrydobyharrydoby says:

    To Republicans, the following is a feature, not a bug:

    Cutting marginal tax rates can also be perceived as primarily beneficial to the wealthy, which some see as politically rather than economically motivated:[102]

    The specific set of foolish ideas that has laid claim to the name "supply side economics" is a crank doctrine that would have had little influence if it did not appeal to the prejudices of editors and wealthy men.
    — Paul Krugman[103]

    Critics of supply-side policies emphasize the growing federal deficits, increased income inequality and lack of growth.

  3. gertie97 says:

    It's worth remembering that the last GOP president who paid attention to the debt and deficit was George H.W. Bush. Republicans won't make that mistake again.

    • RepealAndReplace says:

      So true. I've always credited Daddy Bush with making amends for signing on to Voodoo Economics in '81 with his 1990 tax increase. Between that and Clinton's '93 tax increase, they balanced the budget.

       

       

  4. JohnInDenverJohnInDenver says:

    the deficit of $866.8 billion would have been worse, except for the $24.5 billion in added tariff receipts through the first 10 months of the year., about 175% (up $24.5 billion) of FY18's 10 month collection.

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