In describing the GOP tax cuts, House Minority Leader Nancy Pelosi, D-Calif., said that they and bonuses American workers were getting were “crumbs.” They were “tax cuts for the rich.” Some argued that the tax cuts would reduce revenues. Pelosi predicted, “This thing will explode the deficit.”
How about some tax facts?
The argument that tax cuts reduce federal revenues can be disposed of quite easily. According to the Congressional Budget Office, revenues from federal income taxes were $76 billion higher in the first half of this year than they were in the first half of 2017.
The Treasury Department says it expects that federal revenues will continue to exceed last year’s for the rest of 2018. Despite record federal revenues, 2018 will see a massive deficit, perhaps topping $1 trillion.
Our massive deficit is a result not of tax cuts, but of profligate congressional spending that outruns rising tax revenues. Grossly false statements about tax cuts’ reducing revenue should be put to rest in the wake of federal revenue increases seen with tax cuts during the Kennedy, Reagan, and Trump administrations.
A very disturbing and mostly ignored issue is how absence of skin in the game negatively impacts the political arena. It turns out that 45 percent of American households—nearly 78 million individuals—have no federal income tax obligation. That poses a serious political problem.
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DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
3 comments:
Makes you conscious of the rates!
When Marty O'moron raised the sales tax in his socialist republic of Maryland and instituted a special alcohol tax, I started going a few miles up the road to Delaware - no sales tax and no add-on alcohol tax! I would guess their overall revenue intake from the eastern shore actually declined!
This conversation is about federal income tax, not sales tax. The real question is how, when you allow so many to be on the public dole, do you create a system where there are more wage earners and fewer welfare recipients?
Maryland politicians are not held accountable for the use of taxes collected from you. I once lived in a community that collected large amounts of HOA fees and never provided a financial statement. Never new how the money was spent. Same thing with Maryland.
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