task0778
Diamond Member
Which is more fiscally irresponsible?
At the heart of the liberal disregard for fiscal restraint is the idea that because Republicans passed the Trump tax cuts in 2017, passing a raft of new social-welfare programs now is perfectly responsible. While it is undeniable that Trump-era Republicans were profligate, it’s worth noting that at the time of passage, the CBO estimated that the Trump tax cuts would increase deficits by $1.5 trillion over a decade. In March, Democrats passed a $1.9 trillion package billed as “COVID relief” and didn’t bother finding a way to pay for it. So even before setting out on their current spending push, Democrats already passed legislation that exceeded the Trump tax cuts.
[I think it is also worth noting that the GOP's profligate spending under Trump was due in part to the Dems' demand to spend more money on their agenda.]
This week, CBO further undermined the attempt by Democrats to blame tax cuts for our fiscal woes by revealing that in the 2021 fiscal year that just ended in September, federal tax collections soared. Specifically, this past year, the government collected $4.047 trillion in tax revenue, with corporate tax collections jumping 75 percent as the economy reopened. What’s amazing about that number is that in June 2017, the CBO projected that the government would collect $4.011 trillion in revenue in 2021. In other words, in the most recent fiscal year, the government raised $36 billion more than was expected before the Trump tax cuts were passed.
The Manhattan Institute’s Brian Riedl, taking into account CBO’s most recent economic projections, calculates that in 2021, revenue rose to 18.1 percent of GDP. That is the highest level since 2001 and well above the post–World War II average of 17.2 percent. In other words, we are experiencing high deficits right now not because taxes came up short, but because the government spent a lot more than anticipated.
If you look at the CBO projections from before Trump's tax cuts were passed and the actual results from the years 2019-2021 .... the three full fiscal years during which the Trump tax cuts have been in effect. Over this time period, deficits were an incredible $4.5 trillion above what had been projected by the CBO. However, 86 percent of these additional deficits were attributable to spending coming in above expectations, while just 14 percent were due to a shortfall in projected revenue.
Since the 2017 Tax Cuts Went into Effect, Federal Spending Has Exceeded CBO Projections By Far More Than Revenue Has Fallen Short.
From 2019-2021, Deficits Were $4.5 Trillion Higher Than Projected -- 86% of This Was Due to Increased Spending
In 2021, the Federal Government Collected More Taxes Than Projected, But Spent $1.9 Trillion More Than Anticipated, Triggering a Massive Deficit
.... Spending went up during the Trump era because of bipartisan agreements to abandon entitlement reform, blow past the budget caps negotiated during the Tea Party era, and throw trillions of dollars at the pandemic and economic-relief efforts. So both sides are to blame for Washington’s spending problem, no doubt. But the numbers make it clear that the underlying driver of deficits is abnormally high spending rather than abnormally low levels of taxation.
www.nationalreview.com
And when you look at the spending the Dems want to do now, it boggles the mind. Imagine if you will what would have happened if Manchin and Sinema had gone along with the Far Left agenda and they had passed all the profligate spending through reconciliation. Still might if M&S capitulate.
At the heart of the liberal disregard for fiscal restraint is the idea that because Republicans passed the Trump tax cuts in 2017, passing a raft of new social-welfare programs now is perfectly responsible. While it is undeniable that Trump-era Republicans were profligate, it’s worth noting that at the time of passage, the CBO estimated that the Trump tax cuts would increase deficits by $1.5 trillion over a decade. In March, Democrats passed a $1.9 trillion package billed as “COVID relief” and didn’t bother finding a way to pay for it. So even before setting out on their current spending push, Democrats already passed legislation that exceeded the Trump tax cuts.
[I think it is also worth noting that the GOP's profligate spending under Trump was due in part to the Dems' demand to spend more money on their agenda.]
This week, CBO further undermined the attempt by Democrats to blame tax cuts for our fiscal woes by revealing that in the 2021 fiscal year that just ended in September, federal tax collections soared. Specifically, this past year, the government collected $4.047 trillion in tax revenue, with corporate tax collections jumping 75 percent as the economy reopened. What’s amazing about that number is that in June 2017, the CBO projected that the government would collect $4.011 trillion in revenue in 2021. In other words, in the most recent fiscal year, the government raised $36 billion more than was expected before the Trump tax cuts were passed.
The Manhattan Institute’s Brian Riedl, taking into account CBO’s most recent economic projections, calculates that in 2021, revenue rose to 18.1 percent of GDP. That is the highest level since 2001 and well above the post–World War II average of 17.2 percent. In other words, we are experiencing high deficits right now not because taxes came up short, but because the government spent a lot more than anticipated.
If you look at the CBO projections from before Trump's tax cuts were passed and the actual results from the years 2019-2021 .... the three full fiscal years during which the Trump tax cuts have been in effect. Over this time period, deficits were an incredible $4.5 trillion above what had been projected by the CBO. However, 86 percent of these additional deficits were attributable to spending coming in above expectations, while just 14 percent were due to a shortfall in projected revenue.
Since the 2017 Tax Cuts Went into Effect, Federal Spending Has Exceeded CBO Projections By Far More Than Revenue Has Fallen Short.
From 2019-2021, Deficits Were $4.5 Trillion Higher Than Projected -- 86% of This Was Due to Increased Spending
In 2021, the Federal Government Collected More Taxes Than Projected, But Spent $1.9 Trillion More Than Anticipated, Triggering a Massive Deficit
.... Spending went up during the Trump era because of bipartisan agreements to abandon entitlement reform, blow past the budget caps negotiated during the Tea Party era, and throw trillions of dollars at the pandemic and economic-relief efforts. So both sides are to blame for Washington’s spending problem, no doubt. But the numbers make it clear that the underlying driver of deficits is abnormally high spending rather than abnormally low levels of taxation.
CBO Blows Up Democrats’ Spin on Taxes | National Review
The numbers make it clear that the underlying driver of deficits is abnormally high spending rather than abnormally low levels of taxation.
www.nationalreview.com
And when you look at the spending the Dems want to do now, it boggles the mind. Imagine if you will what would have happened if Manchin and Sinema had gone along with the Far Left agenda and they had passed all the profligate spending through reconciliation. Still might if M&S capitulate.
