Bessent: US Tariff Revenue Could Top $500B a Year

Tax cuts increased tax revenues. The CBO doesnt account for increased GDP and they are always wrong. The tariffs will end the deficit in a few years. Then we pay down the debt
The idea that tax cuts increase tax revenues is a highly debated and controversial topic in economics. While a short-term boost in revenues can sometimes occur under specific conditions, most evidence and economic consensus show that large, unpaid-for tax cuts reduce total government revenue in the long run.
The concept is a central pillar of "supply-side economics," sometimes referred to as "trickle-down economics".
The Laffer Curve: The theoretical argument
The claim is rooted in the Laffer Curve, a bell-shaped theory popularized by economist Arthur Laffer in the 1970s.
  • It suggests that at a 0% tax rate, the government collects no revenue. At a 100% tax rate, the government also collects no revenue, as there is no incentive to work.
  • The curve posits a theoretical "sweet spot" at an intermediate tax rate where government revenue is maximized.
  • Following this logic, if tax rates are currently on the high, downward-sloping side of the curve, a tax cut would theoretically move the rate closer to the optimal point, increasing economic activity and ultimately boosting tax receipts.
Why the theory is rarely observed in practice
The idea that tax cuts will pay for themselves by stimulating enough economic growth to offset the lower rates has not generally been borne out by recent experience in the U.S..
  • Behavioral effects are small: Economic analysis has shown that the effect of tax cuts on individual behavior, such as increased work or investment, is generally modest and not enough to overcome the initial revenue loss.
  • Crowding out: Unpaid-for tax cuts increase budget deficits, which can be financed through borrowing. This increases the demand for capital and can lead to higher interest rates, which "crowds out" private investment and harms long-run economic growth.
  • Uncertain peak: The Laffer Curve's optimal tax rate is theoretical, and no one can know with certainty what that rate is. Most economists believe U.S. tax rates are not on the high side of the curve, meaning rate reductions would not significantly increase revenue.
The case of the 2017 Tax Cuts and Jobs Act (TCJA)
The TCJA provides a recent, real-world example of how tax cuts have impacted government revenue.
  • Significant revenue reduction: The TCJA was projected to significantly reduce federal revenue, and this has occurred. By 2019, federal revenues were $545 billion (7.4%) lower than pre-TCJA projections.
  • Corporate tax revenue decline: The corporate tax rate was lowered from 35% to 21%. In 2018, corporate tax revenue was nearly 40% lower than projected before the law was passed.
  • Temporary provisions distort the picture: Some proponents of the TCJA point to periods where revenues have increased. However, these increases were often driven by temporary factors, like the post-pandemic economic recovery, and do not show a sustained reversal of revenue trends.
Conclusion
Tax cuts do not reliably increase government tax revenues. While the theoretical Laffer Curve is an influential model in economic discourse, historical evidence suggests that major tax cuts, particularly those that increase deficits, typically reduce total government revenue in the long run.







  • Exploring the Laffer Curve: Tax Rates and Revenue Explained
    Aug 8, 2025 — What Is the Laffer Curve? The Laffer Curve showcases the intricate relationship between tax rates and government revenue, a concept popularized by economist Art...
    favicon

    Investopedia

    images


  • Supply Side Economics - NYU Stern
    Consider the evidence on each of these two effects. * 1. The labor supply effect: 1.1. The maximum income tax bracket was reduced from 91% to 70% during the Ken...
    favicon

    NYU Stern


  • Supply-Side Economics: What You Need to Know - Investopedia
    Nov 18, 2024 — What Is Supply-Side Economics? The theory of supply-side economics maintains that increasing the supply of goods and services is the engine of economic growth. ...
The idea that tax cuts increase tax revenues is a highly debated and controversial topic in economics. While a short-term boost in revenues can sometimes occur under specific conditions, most evidence and economic consensus show that large, unpaid-for tax cuts reduce total government revenue in the long run.
The concept is a central pillar of "supply-side economics," sometimes referred to as "trickle-down economics".
The Laffer Curve: The theoretical argument
The claim is rooted in the Laffer Curve, a bell-shaped theory popularized by economist Arthur Laffer in the 1970s.
  • It suggests that at a 0% tax rate, the government collects no revenue. At a 100% tax rate, the government also collects no revenue, as there is no incentive to work.
  • The curve posits a theoretical "sweet spot" at an intermediate tax rate where government revenue is maximized.
  • Following this logic, if tax rates are currently on the high, downward-sloping side of the curve, a tax cut would theoretically move the rate closer to the optimal point, increasing economic activity and ultimately boosting tax receipts.
Why the theory is rarely observed in practice
The idea that tax cuts will pay for themselves by stimulating enough economic growth to offset the lower rates has not generally been borne out by recent experience in the U.S..
  • Behavioral effects are small: Economic analysis has shown that the effect of tax cuts on individual behavior, such as increased work or investment, is generally modest and not enough to overcome the initial revenue loss.
  • Crowding out: Unpaid-for tax cuts increase budget deficits, which can be financed through borrowing. This increases the demand for capital and can lead to higher interest rates, which "crowds out" private investment and harms long-run economic growth.
  • Uncertain peak: The Laffer Curve's optimal tax rate is theoretical, and no one can know with certainty what that rate is. Most economists believe U.S. tax rates are not on the high side of the curve, meaning rate reductions would not significantly increase revenue.
The case of the 2017 Tax Cuts and Jobs Act (TCJA)
The TCJA provides a recent, real-world example of how tax cuts have impacted government revenue.
  • Significant revenue reduction: The TCJA was projected to significantly reduce federal revenue, and this has occurred. By 2019, federal revenues were $545 billion (7.4%) lower than pre-TCJA projections.
  • Corporate tax revenue decline: The corporate tax rate was lowered from 35% to 21%. In 2018, corporate tax revenue was nearly 40% lower than projected before the law was passed.
  • Temporary provisions distort the picture: Some proponents of the TCJA point to periods where revenues have increased. However, these increases were often driven by temporary factors, like the post-pandemic economic recovery, and do not show a sustained reversal of revenue trends.
Conclusion
Tax cuts do not reliably increase government tax revenues. While the theoretical Laffer Curve is an influential model in economic discourse, historical evidence suggests that major tax cuts, particularly those that increase deficits, typically reduce total government revenue in the long run.







  • Exploring the Laffer Curve: Tax Rates and Revenue Explained
    Aug 8, 2025 — What Is the Laffer Curve? The Laffer Curve showcases the intricate relationship between tax rates and government revenue, a concept popularized by economist Art...
    favicon

    Investopedia

    images


  • Supply Side Economics - NYU Stern
    Consider the evidence on each of these two effects. * 1. The labor supply effect: 1.1. The maximum income tax bracket was reduced from 91% to 70% during the Ken...
    favicon

    NYU Stern


  • Supply-Side Economics: What You Need to Know - Investopedia
    Nov 18, 2024 — What Is Supply-Side Economics? The theory of supply-side economics maintains that increasing the supply of goods and services is the engine of economic growth. ...


 
U.S. Treasury Secretary Scott Bessent said Tuesday that customs duty revenues from President Donald Trump's tariffs may surpass $500 billion a year, with a substantial jump from July to August and likely a bigger jump in September.

Bessent told a White House Cabinet meeting that his prior estimate of a $300 billion annual tariff collection rate was too low.

"We had a substantial jump from July to August, and I think we're going to see a bigger jump from August to September," Bessent said. "So I think we could be on our way well over half a trillion, maybe towards a trillion-dollar number. This administration, your administration, has made a meaningful dent in the budget deficit."

Tariff revenue would offset the deficit increases triggered by the Republicans' tax-cut and spending bill passed this year. CBO estimated this bill would widen the deficit by $3.4 trillion over the next decade.

Trump's tariffs drove July U.S. customs duty collections up by nearly $21 billion from the $7 billion collected in July 2024 and about even with the $20 billion increase registered in June. Significant increases in tariff rates for nearly all trading partners kicked in on August 7.


BJ-
The new Golden Age
America is back.
And every penny of it is coming out of our pockets.

Tell me again how tRump is cutting your taxes.
 
Bessent also noted that the Congressional Budget Office's upwardly revised estimate last week of federal revenue from Trump's tariffs, forecasting that it could reduce federal deficits by $4 trillion over 10 years. "And I would expect that that number could go up from here," Bessent added.
And all of it from increasing taxes on American citizens.
 
Yet the debt just hit 38 trillion an increase of one trillion from 37 trillion in July.
It's costing the taxpayers $1.1 Million per day for his stunt in D.C.

Trump loves spending and MAGA goes along with it because Trump wears a hat saying he's right about everything.

It's a ******* cult, I tell you. Nothing but.
 
It's costing the taxpayers $1.1 Million per day for his stunt in D.C.

Trump loves spending and MAGA goes along with it because Trump wears a hat saying he's right about everything.

It's a ******* cult, I tell you. Nothing but.
Trump has no problem spending lavishly with our money...
 
The idea that tax cuts increase tax revenues is a highly debated and controversial topic in economics. While a short-term boost in revenues can sometimes occur under specific conditions, most evidence and economic consensus show that large, unpaid-for tax cuts reduce total government revenue in the long run.
The concept is a central pillar of "supply-side economics," sometimes referred to as "trickle-down economics".
The Laffer Curve: The theoretical argument
The claim is rooted in the Laffer Curve, a bell-shaped theory popularized by economist Arthur Laffer in the 1970s.
  • It suggests that at a 0% tax rate, the government collects no revenue. At a 100% tax rate, the government also collects no revenue, as there is no incentive to work.
  • The curve posits a theoretical "sweet spot" at an intermediate tax rate where government revenue is maximized.
  • Following this logic, if tax rates are currently on the high, downward-sloping side of the curve, a tax cut would theoretically move the rate closer to the optimal point, increasing economic activity and ultimately boosting tax receipts.
Why the theory is rarely observed in practice
The idea that tax cuts will pay for themselves by stimulating enough economic growth to offset the lower rates has not generally been borne out by recent experience in the U.S..
  • Behavioral effects are small: Economic analysis has shown that the effect of tax cuts on individual behavior, such as increased work or investment, is generally modest and not enough to overcome the initial revenue loss.
  • Crowding out: Unpaid-for tax cuts increase budget deficits, which can be financed through borrowing. This increases the demand for capital and can lead to higher interest rates, which "crowds out" private investment and harms long-run economic growth.
  • Uncertain peak: The Laffer Curve's optimal tax rate is theoretical, and no one can know with certainty what that rate is. Most economists believe U.S. tax rates are not on the high side of the curve, meaning rate reductions would not significantly increase revenue.
The case of the 2017 Tax Cuts and Jobs Act (TCJA)
The TCJA provides a recent, real-world example of how tax cuts have impacted government revenue.
  • Significant revenue reduction: The TCJA was projected to significantly reduce federal revenue, and this has occurred. By 2019, federal revenues were $545 billion (7.4%) lower than pre-TCJA projections.
  • Corporate tax revenue decline: The corporate tax rate was lowered from 35% to 21%. In 2018, corporate tax revenue was nearly 40% lower than projected before the law was passed.
  • Temporary provisions distort the picture: Some proponents of the TCJA point to periods where revenues have increased. However, these increases were often driven by temporary factors, like the post-pandemic economic recovery, and do not show a sustained reversal of revenue trends.
Conclusion
Tax cuts do not reliably increase government tax revenues. While the theoretical Laffer Curve is an influential model in economic discourse, historical evidence suggests that major tax cuts, particularly those that increase deficits, typically reduce total government revenue in the long run.







  • Exploring the Laffer Curve: Tax Rates and Revenue Explained
    Aug 8, 2025 — What Is the Laffer Curve? The Laffer Curve showcases the intricate relationship between tax rates and government revenue, a concept popularized by economist Art...
    favicon

    Investopedia

    images


  • Supply Side Economics - NYU Stern
    Consider the evidence on each of these two effects. * 1. The labor supply effect: 1.1. The maximum income tax bracket was reduced from 91% to 70% during the Ken...
    favicon

    NYU Stern


  • Supply-Side Economics: What You Need to Know - Investopedia
    Nov 18, 2024 — What Is Supply-Side Economics? The theory of supply-side economics maintains that increasing the supply of goods and services is the engine of economic growth. ...
The idea that tax cuts increase tax revenues is a highly debated and controversial topic in economics. While a short-term boost in revenues can sometimes occur under specific conditions, most evidence and economic consensus show that large, unpaid-for tax cuts reduce total government revenue in the long run.
The concept is a central pillar of "supply-side economics," sometimes referred to as "trickle-down economics".
The Laffer Curve: The theoretical argument
The claim is rooted in the Laffer Curve, a bell-shaped theory popularized by economist Arthur Laffer in the 1970s.
  • It suggests that at a 0% tax rate, the government collects no revenue. At a 100% tax rate, the government also collects no revenue, as there is no incentive to work.
  • The curve posits a theoretical "sweet spot" at an intermediate tax rate where government revenue is maximized.
  • Following this logic, if tax rates are currently on the high, downward-sloping side of the curve, a tax cut would theoretically move the rate closer to the optimal point, increasing economic activity and ultimately boosting tax receipts.
Why the theory is rarely observed in practice
The idea that tax cuts will pay for themselves by stimulating enough economic growth to offset the lower rates has not generally been borne out by recent experience in the U.S..
  • Behavioral effects are small: Economic analysis has shown that the effect of tax cuts on individual behavior, such as increased work or investment, is generally modest and not enough to overcome the initial revenue loss.
  • Crowding out: Unpaid-for tax cuts increase budget deficits, which can be financed through borrowing. This increases the demand for capital and can lead to higher interest rates, which "crowds out" private investment and harms long-run economic growth.
  • Uncertain peak: The Laffer Curve's optimal tax rate is theoretical, and no one can know with certainty what that rate is. Most economists believe U.S. tax rates are not on the high side of the curve, meaning rate reductions would not significantly increase revenue.
The case of the 2017 Tax Cuts and Jobs Act (TCJA)
The TCJA provides a recent, real-world example of how tax cuts have impacted government revenue.
  • Significant revenue reduction: The TCJA was projected to significantly reduce federal revenue, and this has occurred. By 2019, federal revenues were $545 billion (7.4%) lower than pre-TCJA projections.
  • Corporate tax revenue decline: The corporate tax rate was lowered from 35% to 21%. In 2018, corporate tax revenue was nearly 40% lower than projected before the law was passed.
  • Temporary provisions distort the picture: Some proponents of the TCJA point to periods where revenues have increased. However, these increases were often driven by temporary factors, like the post-pandemic economic recovery, and do not show a sustained reversal of revenue trends.
Conclusion
Tax cuts do not reliably increase government tax revenues. While the theoretical Laffer Curve is an influential model in economic discourse, historical evidence suggests that major tax cuts, particularly those that increase deficits, typically reduce total government revenue in the long run.







  • Exploring the Laffer Curve: Tax Rates and Revenue Explained
    Aug 8, 2025 — What Is the Laffer Curve? The Laffer Curve showcases the intricate relationship between tax rates and government revenue, a concept popularized by economist Art...
    favicon

    Investopedia

    images


  • Supply Side Economics - NYU Stern
    Consider the evidence on each of these two effects. * 1. The labor supply effect: 1.1. The maximum income tax bracket was reduced from 91% to 70% during the Ken...
    favicon

    NYU Stern


  • Supply-Side Economics: What You Need to Know - Investopedia
    Nov 18, 2024 — What Is Supply-Side Economics? The theory of supply-side economics maintains that increasing the supply of goods and services is the engine of economic growth. ...


Trumps tax cuts increased tax revenues thats a fact not a debate

Bidens spending caused massive inflation thats a fact not a debate
 
Trump spent one trillion in one month. He is not saving us any money, nor is he reducing his spending...His butt kissers will defend him no matter how much he spends.
 
Tax cuts increased tax revenues. The CBO doesnt account for increased GDP and they are always wrong. The tariffs will end the deficit in a few years. Then we pay down the debt
Key Facts:

  • In fiscal year 2022, federal tax revenues reached a record-high of $4.9 trillion– $1.6 trillion or 48 percent higher than when the Trump tax cuts were passed and $884 billion higher than CBO’s projections for 2022.
    • Corporate tax revenues reached a record-high of $425 billion – $128 billion or 43 percent higher than when the Trump tax cuts were passed and $72 billion higher than CBO’s projections for 2022.
    • Individual tax revenues reached a record-high of $2.6 trillion – over $1 trillion or 66 percent higher than when the Trump tax cuts were passed and $642 billion higher than CBO’s projections for 2022.
    • On average, revenues increased $205 billion per year over CBO’s projections.
  • In the first two years after passage of the Trump tax cuts, GDP growth was a full percentage point higherthan CBO’s pre-TCJA forecast.
    • According to the White House Office of Management and Budget, every additional one percent of sustained GDP growth will result in $600 billion in new revenues over 5 years and $2.8 trillion over 1
 
Trumps tax cuts increased tax revenues thats a fact not a debate

Bidens spending caused massive inflation thats a fact not a debate
Then prove your fact; no, you can't, and won't, so there is no truth, only speculative opinions.
 
15th post
The idea that tax cuts increase tax revenues is a highly debated and controversial topic in economics. While a short-term boost in revenues can sometimes occur under specific conditions, most evidence and economic consensus show that large, unpaid-for tax cuts reduce total government revenue in the long run.
The concept is a central pillar of "supply-side economics," sometimes referred to as "trickle-down economics".
The Laffer Curve: The theoretical argument
The claim is rooted in the Laffer Curve, a bell-shaped theory popularized by economist Arthur Laffer in the 1970s.
  • It suggests that at a 0% tax rate, the government collects no revenue. At a 100% tax rate, the government also collects no revenue, as there is no incentive to work.
  • The curve posits a theoretical "sweet spot" at an intermediate tax rate where government revenue is maximized.
  • Following this logic, if tax rates are currently on the high, downward-sloping side of the curve, a tax cut would theoretically move the rate closer to the optimal point, increasing economic activity and ultimately boosting tax receipts.
Why the theory is rarely observed in practice
The idea that tax cuts will pay for themselves by stimulating enough economic growth to offset the lower rates has not generally been borne out by recent experience in the U.S..
  • Behavioral effects are small: Economic analysis has shown that the effect of tax cuts on individual behavior, such as increased work or investment, is generally modest and not enough to overcome the initial revenue loss.
  • Crowding out: Unpaid-for tax cuts increase budget deficits, which can be financed through borrowing. This increases the demand for capital and can lead to higher interest rates, which "crowds out" private investment and harms long-run economic growth.
  • Uncertain peak: The Laffer Curve's optimal tax rate is theoretical, and no one can know with certainty what that rate is. Most economists believe U.S. tax rates are not on the high side of the curve, meaning rate reductions would not significantly increase revenue.
The case of the 2017 Tax Cuts and Jobs Act (TCJA)
The TCJA provides a recent, real-world example of how tax cuts have impacted government revenue.
  • Significant revenue reduction: The TCJA was projected to significantly reduce federal revenue, and this has occurred. By 2019, federal revenues were $545 billion (7.4%) lower than pre-TCJA projections.
  • Corporate tax revenue decline: The corporate tax rate was lowered from 35% to 21%. In 2018, corporate tax revenue was nearly 40% lower than projected before the law was passed.
  • Temporary provisions distort the picture: Some proponents of the TCJA point to periods where revenues have increased. However, these increases were often driven by temporary factors, like the post-pandemic economic recovery, and do not show a sustained reversal of revenue trends.
Conclusion
Tax cuts do not reliably increase government tax revenues. While the theoretical Laffer Curve is an influential model in economic discourse, historical evidence suggests that major tax cuts, particularly those that increase deficits, typically reduce total government revenue in the long run.







  • Exploring the Laffer Curve: Tax Rates and Revenue Explained
    Aug 8, 2025 — What Is the Laffer Curve? The Laffer Curve showcases the intricate relationship between tax rates and government revenue, a concept popularized by economist Art...
    favicon

    Investopedia

    images


  • Supply Side Economics - NYU Stern
    Consider the evidence on each of these two effects. * 1. The labor supply effect: 1.1. The maximum income tax bracket was reduced from 91% to 70% during the Ken...
    favicon

    NYU Stern


  • Supply-Side Economics: What You Need to Know - Investopedia
    Nov 18, 2024 — What Is Supply-Side Economics? The theory of supply-side economics maintains that increasing the supply of goods and services is the engine of economic growth. ...
The idea that tax cuts increase tax revenues is a highly debated and controversial topic in economics. While a short-term boost in revenues can sometimes occur under specific conditions, most evidence and economic consensus show that large, unpaid-for tax cuts reduce total government revenue in the long run.
The concept is a central pillar of "supply-side economics," sometimes referred to as "trickle-down economics".
The Laffer Curve: The theoretical argument
The claim is rooted in the Laffer Curve, a bell-shaped theory popularized by economist Arthur Laffer in the 1970s.
  • It suggests that at a 0% tax rate, the government collects no revenue. At a 100% tax rate, the government also collects no revenue, as there is no incentive to work.
  • The curve posits a theoretical "sweet spot" at an intermediate tax rate where government revenue is maximized.
  • Following this logic, if tax rates are currently on the high, downward-sloping side of the curve, a tax cut would theoretically move the rate closer to the optimal point, increasing economic activity and ultimately boosting tax receipts.
Why the theory is rarely observed in practice
The idea that tax cuts will pay for themselves by stimulating enough economic growth to offset the lower rates has not generally been borne out by recent experience in the U.S..
  • Behavioral effects are small: Economic analysis has shown that the effect of tax cuts on individual behavior, such as increased work or investment, is generally modest and not enough to overcome the initial revenue loss.
  • Crowding out: Unpaid-for tax cuts increase budget deficits, which can be financed through borrowing. This increases the demand for capital and can lead to higher interest rates, which "crowds out" private investment and harms long-run economic growth.
  • Uncertain peak: The Laffer Curve's optimal tax rate is theoretical, and no one can know with certainty what that rate is. Most economists believe U.S. tax rates are not on the high side of the curve, meaning rate reductions would not significantly increase revenue.
The case of the 2017 Tax Cuts and Jobs Act (TCJA)
The TCJA provides a recent, real-world example of how tax cuts have impacted government revenue.
  • Significant revenue reduction: The TCJA was projected to significantly reduce federal revenue, and this has occurred. By 2019, federal revenues were $545 billion (7.4%) lower than pre-TCJA projections.
  • Corporate tax revenue decline: The corporate tax rate was lowered from 35% to 21%. In 2018, corporate tax revenue was nearly 40% lower than projected before the law was passed.
  • Temporary provisions distort the picture: Some proponents of the TCJA point to periods where revenues have increased. However, these increases were often driven by temporary factors, like the post-pandemic economic recovery, and do not show a sustained reversal of revenue trends.
Conclusion
Tax cuts do not reliably increase government tax revenues. While the theoretical Laffer Curve is an influential model in economic discourse, historical evidence suggests that major tax cuts, particularly those that increase deficits, typically reduce total government revenue in the long run.







  • Exploring the Laffer Curve: Tax Rates and Revenue Explained
    Aug 8, 2025 — What Is the Laffer Curve? The Laffer Curve showcases the intricate relationship between tax rates and government revenue, a concept popularized by economist Art...
    favicon

    Investopedia

    images


  • Supply Side Economics - NYU Stern
    Consider the evidence on each of these two effects. * 1. The labor supply effect: 1.1. The maximum income tax bracket was reduced from 91% to 70% during the Ken...
    favicon

    NYU Stern


  • Supply-Side Economics: What You Need to Know - Investopedia
    Nov 18, 2024 — What Is Supply-Side Economics? The theory of supply-side economics maintains that increasing the supply of goods and services is the engine of economic growth. ...


Key Facts:

  • In fiscal year 2022, federal tax revenues reached a record-high of $4.9 trillion– $1.6 trillion or 48 percent higher than when the Trump tax cuts were passed and $884 billion higher than CBO’s projections for 2022.
    • Corporate tax revenues reached a record-high of $425 billion – $128 billion or 43 percent higher than when the Trump tax cuts were passed and $72 billion higher than CBO’s projections for 2022.
    • Individual tax revenues reached a record-high of $2.6 trillion – over $1 trillion or 66 percent higher than when the Trump tax cuts were passed and $642 billion higher than CBO’s projections for 2022.
    • On average, revenues increased $205 billion per year over CBO’s projections.
  • In the first two years after passage of the Trump tax cuts, GDP growth was a full percentage point higherthan CBO’s pre-TCJA forecast.
    • According to the White House Office of Management and Budget, every additional one percent of sustained GDP growth will result in $600 billion in new revenues over 5 years and $2.8 trillion over 1
 
Hey dipshit. If Americans are paying $500 billion in extra tariffs, it means that we aren’t bringing manufacturing back to the states.

Was the purpose of the tariffs to take money from the small businesses and working class?
That's not how it works, stupid.
 

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