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Comment on [HN] U.S. Deficit, Pegged at $1.7T, Effectively Doubled in 2023

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.

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itsonlygeorge@reddthat.com ⁨1⁩ ⁨year⁩ ago
Corporate tax needs to be increased.

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- JasSmith@sh.itjust.works ⁨1⁩ ⁨year⁩ ago
  Even if it results in less tax revenue, and poor people becoming even poorer?
  
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  - 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…
    
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    JasSmith@sh.itjust.works ⁨1⁩ ⁨year⁩ ago
    
    We changed the corporate tax rate in 2017 and 2014 and have been collecting less and less taxes.
    
    As I explained above, this is not correct. In fact, the opposite is true. Tax revenue continues to trend up. They did not not decrease after 2014 or 2017.
    
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