Once again, the actual results of lowering taxes lead to increased revenues and confound the arguments of the naysayers. President Trump and his economic team explained to America that cutting the corporate tax rate from an uncompetitive 35% to 21% and reducing the income tax rate for middle class Americans would lead to greater business activity, higher household income and more tax revenue.
The Washington establishment cried foul and argued that the tax reduction would lead to lower revenue and higher annual deficits. They continued to ignore the lessons of history from both Republicans Reagan and Bush and Democrats Kennedy and Clinton. All four of these Presidents cut taxes and witnessed increased government revenue.
Well, the data validates Trump’s promise, and the 2017 Tax Cuts and Jobs Act.
Economists from the Trump Team, Tyler Goodspeed and Kevin Hassett, reported in the Wall Street Journal that capital expenditures increased by 20% in the two years after the tax cut. Household incomes rose by $5,000 in the first two years, higher than the previous eight years combined. And tax receipts are at all-time highs, with corporate tax revenue $46 billion above projections.
Letting businesses and citizens keep more of their hard-earned money, once again in the annals of American history, has led to new record highs of tax revenue. The fundamental truth is that individual Americans can deliver more productivity and prosperity than government can. During this election cycle, I suggest you encourage every politician running for federal office to make the Trump tax cuts permanent.