Comment on [HN] U.S. Deficit, Pegged at $1.7T, Effectively Doubled in 2023
itsonlygeorge@reddthat.com 1 year ago
“The increase in the deficit last year was largely caused by a sharp fall in tax revenues…”
So, this is the beginning of the Trump era tax cuts for the wealthy and corporations. They have been using this as an excuse to cut down social programs, cut funding to various government departments, and shutdown the government with their petty tantrums.
JasSmith@sh.itjust.works 1 year ago
Tax revenues increased after those tax cuts. It will help to read about the Laffer curve. There is a kind if elasticity of demand for tax revenue. When raising taxes, some proportion of economic activity, including people working, is reduced. This can lead to a net decrease in tax revenue. The opposite is also true. The Laffer curve stipulates that there is an optimal tax efficiency on the vertex.
Of course this has nothing to do with fair distribution. It simply means that, paradoxically, higher taxes would reduce the size of the federal budget.
itsonlygeorge@reddthat.com 1 year ago
Corporate tax needs to be increased.
JasSmith@sh.itjust.works 1 year ago
Even if it results in less tax revenue, and poor people becoming even poorer?
itsonlygeorge@reddthat.com 1 year ago
P.L. 115-97 permanently reduced the 35% CIT rate on ECI to a 21% flat rate for tax years beginning after 31 December 2017.
pgpf.org/…/six-charts-that-show-how-low-corporate…