more than twice what the tax cut was supposed to ‘cost’
We can’t cut taxes! We’ll lose money and the government will go broke.
Oh yeah? Like has always happened every time it’s tried, tax cuts end up with the government taking in more than the tax cut cost.
But don’t try to convince the Dims of that.
As Steve Moore writes in today’s Wall Street Journal, the Trump tax cut is paying for itself. By a lot:
Compare the August 2018 economic forecast from the Congressional Budget Office with the one from June 2017, before the tax cuts passed, and we discover some very good news. The much higher than expected economic growth in the wake of the Trump tax cut means that U.S. gross domestic product will be higher than expected every year over the next decade.
Even if we assume a reversion to the pre-Trump 1.9% growth path, the ratchet up in GDP this year translates into $179 billion in unexpected output this year, $465 billion next year, $654 billion in 2020, and so on. This magic of compounding yields more than $6 trillion additional GDP over the decade thanks to the faster growth already achieved.
The federal government is expected to capture a bit more than 18% of that extra output in tax revenue—about $1.1 trillion over the 10-year window. That’s well above the $400 billion to $500 billion expected revenue loss from the corporate tax-rate cut.
Much more @ Federal revenues jump from faster growth…more than twice what the tax cut was supposed to ‘cost’