How the Trump Tax Cut Is Helping to Push the Federal Deficit to $1 Trillion

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It seems Trump tax cuts for the rich as many here had warned are blowing up the deficit
The amount of corporate taxes collected by the federal government has plunged to historically low levels in the first six months of the year, pushing up the federal budget deficit much faster than economists had predicted.
The reason is President Trump’s tax cuts. The law introduced a standard corporate rate of 21 percent, down from a high of 35 percent, and allowed companies to immediately deduct many new investments. As companies operate with lower taxes and a greater ability to reduce what they owe, the federal government is receiving far less than it would have before the overhaul.

The Trump administration had said that the tax cuts would pay for themselves by generating increased revenue from faster economic growth, but the White House has acknowledged in recent weeks that the deficit is growing faster than it had expected. The Office of Management and Budget said this month that it had revised its forecasts from earlier this year to account for nearly $1 trillion of additional debt over the next decade — on average, almost $100 billion more a year in deficits.

Now here is the big worry

In the trough of the Great Recession in 2009, when companies were laying off hundreds of thousands of workers each month, corporate tax collections plunged by almost a third. It was the largest quarterly drop since the Commerce Department began compiling the data in the 1940s. No other period came close — until this year.

From January to June this year, according to data from the Treasury Department, corporate tax payments fell by a third from the same period a year ago. The drop nearly reached a 75-year low as a share of the economy, according to federal data.

So here we have it, folks, another bad policy of Trump that is leading us backward

a reply to: Willtell

You flagged yourself didn't you.

The amount of corporate taxes collected by the federal government has plunged to historically low levels in the first six months of the year, pushing up the federal budget deficit much faster than economists had predicted.

That's what happenes after 8 years of hope and change and your SPENDING more money than you earn.

The tax cuts ain't got jacksnip to do with anything.

a reply to: Willtell

I tend to think that tax cuts are the wrong way to go--I have 21 trillion reasons.

We need a great communicator as president to explain why we need to pay or bills as a country. It would also help if we had a asset back currency. The Fed is a huge credit card for politicians.

Shame on Trump for not fixing 50+ years of spending problems the American people and politicians have gotten us into within his first 2 years of office.

a reply to: atsgrounded

The government needs to cut their wastefulness before they can justify taking more taxes from people. Trump has been working on trimming the fat through his EO's.

And, as the economy continues improving and more industry comes back to the US, there will be more taxes paid without raising rates for anyone.

a reply to: Willtell

Trump went bankrupt how many times?

If you are in a store and you cannot find you significant other, yell out "TAXATION" if the response isn't "IS THEFT". Leave them, you can do better...

Moral of the story, if you make $1, $100, $1000, 1,000,000 or 10,000,000 taxation of your money is always theft.

Cut spending and keep your hands out of my pockets....

originally posted by: BlueAjah
a reply to: atsgrounded

The government needs to cut their wastefulness before they can justify taking more taxes from people. Trump has been working on trimming the fat through his EO's.

And, as the economy continues improving and more industry comes back to the US, there will be more taxes paid without raising rates for anyone.

I hope you're right.

a reply to: Willtell

OK.

Serious Question.... look at the changes below, especially the child tax credits and deductions and tell me how this is bad for most of us?

Seriously? What are we missing?

Remember that the tables show "Taxable Income" after all these increased deductions.

Old:


New:


www.forbes.com...

The new tax rules also make big changes to the standard deduction and exemptions.

The standard deduction in 2018 as the law currently exists is $13,000 for a couple filing jointly. That number will jump to $24,000. For single filers it jumps from $6,500 to $12,000.

child tax credit gets a big boost. It currently sits at $1,000 and starts to phase out at $110,000 in income for couples and $75,000 in income for everybody else. Under the new law, the credit doubles to $2,000, $1,400 of which is a refundable tax credit. Further, it doesn't start to phase out until $400,000 in income for couples and $200,000 for singles.

Is it even possible to pay off our national debt?

If you answered that question correctly, then this entire thread is a political hack job. Why don't you propose valid solutions to this problem instead of being the problem?

Too difficult?

a reply to: ClovenSky

Is it even possible to pay off our national debt?

Not a snowballs chance in hell of doing it.

originally posted by: ClovenSky
Is it even possible to pay off our national debt?

If you answered that question correctly, then this entire thread is a political hack job. Why don't you propose valid solutions to this problem instead of being the problem?

Too difficult?

There only "national debt" we have is in the form of bonds / treasuries. etc.

The Federal Reserve types money into existence and doesn't "Loan" us anything that they had. It is straight inflation, increasing the money supply.

We don't technically owe the Federal Reserve Corporation anything.

a reply to: infolurker

So I wonder with the trillions they create out of thin air, why can't they just pay off the debt? It isn't like any of the checks and balances that would have once guaranteed those bonds were nullified by paying them off + interest are in effect any more.

If these can't be payed off and we are creating more money out of thin air than there are bonds issued, this is all theater.

So once again we enter make believe land where people think there are actually checks and balances with the fed.

Jubilee anyone?

a reply to: ClovenSky

Almost everything called "debt" is not owed to foreign nations....suprisingly very little is.

What we call "debt" is the Federal Reserve Corporation saying we have more money / typing numbers into an account.

That is it. Then we call it "debt". All we are really doing is inflating the money supply by a fraction when this is done.

Surprise!

How much do we owe China you may ask..... (Because foreign nations buy treasuries an bonds)

www.thebalance.com...

The U.S. debt to China is $1.18 trillion as of May 2018. That's 19 percent of the $6.2 trillion in Treasury bills, notes, and bonds held by foreign countries. The rest of the $21 trillion national debt is owned by either the American people or by the U.S. government itself.

See, the big scam is the belief that "WE" the people OWE something to the Government / Federal Reserve when they decide to crash the system because someone created / inflated money from nothing.

Man that means he might be able to touch Obama’s 10 trillion $$ debt.

a reply to: Willtell

Your OP is BS.

Yes, corporate tax payments have hit historical lows.

What your political hack writer forgot to add in there is that Federal tax revenues have hit historic HIGHS.

Tax Cuts: The latest monthly Treasury report on taxes and spending shows that gross tax receipts in February were $1.4 billion higher than the year before. Weren't the Republican tax cuts supposed to explode the deficit?

44

Federal revenues hit records highs because of tax cuts

So the writer cherry-picked a part of the number to make it seem like the Federal government is making less.

That is a lie.

a reply to: Willtell

Cut spending so much.


Problem?

Solved.


*wipes hands and looks at the Middle East as the next problem to solve*

Again the Trump supporters are in denial.

Like when Trump tried to wishful think the delusion that his inauguration was as huge as Obama’s.


These are FACTS and statistics from Trump's own government.


Your alternative facts are lies

a reply to: DBCowboy

How you going to cut spending when their going to give billions from our taxes to farmers because of Trump I'll conceived Tariff policy