Trump's Economy Is Fantastic

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My 401K has doubled since he became president! Trump 2020!!!

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1. Part - not all - but a part, is due to tax cuts. But those have increased the budget deficit. I fear this is a sugar high we are on now and when we wake up we will have a massive hangover.

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We should not be reducing taxes while we have a budget deficit.

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I'm not following you.

You are saying we will raise more taxes now? But we are not.

We have a great economy now (didn't I admit that in my first post...you bet I did) but we also have a massive deficit!

I must be missing your point.

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I used the phrase “charlatans and cranks” in the first edition of my principles textbook to describe some of the economic advisers to Ronald Reagan, who told him that broad-based income tax cuts would have such large supply-side effects that the tax cuts would raise tax revenue. I did not find such a claim credible, based on the available evidence. I never have, and I still don't.

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My other work has remained consistent with this view. In a paper on dynamic scoring, written while I was working at the White House, Matthew Weinzierl and I estimated that a broad-based income tax cut (applying to both capital and labor income) would recoup only about a quarter of the lost revenue through supply-side growth effects. For a cut in capital income taxes, the feedback is larger--about 50 percent--but still well under 100 percent. A chapter on dynamic scoring in the 2004 Economic Report of the President says same thing.

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“Federal revenue is lower today than it would have been without the tax cuts. There's really no dispute among economists about that,” said Alan D. Viard, a former Bush White House economist now at the nonpartisan American Enterprise Institute. “It's logically possible” that a tax cut could spur sufficient economic growth to pay for itself, Viard said. “But there's no evidence that these tax cuts would come anywhere close to that.

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Yes, the key point you're missing is that you don't tax your way to a balanced budget. That is how the uneducated populace thinks.

You cut taxes and regulations to increase the economy's output, which in turn provides multiples of tax streams in the forms of payroll, sales, etc.

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You cant continue to grow your spending by 7% and expect to ever balance the budget.

I believe when its all said and done, the tax cuts were offset by the increase in revenue due to the growing economy

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trinidadtiger

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