America has a revenue problem. Blame George W. Bush and Donald Trump.

[adrina]

America has a revenue problem. Blame George W. Bush and Donald Trump.​

Even though the national debt is rising, spending can’t be blamed.

https://www.msnbc.com/opinion/msnbc-opinion/us-economy-trump-bush-tax-cuts-deficit-rcna122322

When jobs are plentiful and business profits soar, that means good news for federal tax revenues. At least, that’s how it’s supposed to work.

For 15 years after the Tax Reform Act of 1986 went into effect, that’s exactly what happened: Changes in the U.S. unemployment rate were a strong predictor of changes in our federal tax revenues as a percent of the GDP; a drop in the unemployment rate caused revenues as a percent of GDP to increase. But since the beginning of the 21st century, a series of tax cuts under presidents George W. Bush and Donald Trump have shattered the link between tax revenues and employment. Revenues as a percent of GDP dropped significantly, and now they no longer grow much when the economy strengthens.


After news that the federal deficit grew despite a strong economy, amid rising interest rates, there are renewed fears about the nation’s fiscal outlook. With these fears typically come calls to reduce spending. But the U.S. doesn’t have a spending problem; it has a revenue problem caused by tax cuts.

Between 1995 and 2000, the unemployment rate fell from 5.6% to 4.0%, and revenues rose from 17.9% to 20.0% of GDP — the equivalent of taking in an additional $600 billion per year after adjusting for the size of the economy. When the unemployment rate fell a similar amount between 2015 and 2019, going from 5.4% to 3.7%, revenues dropped from 17.9% of GDP to 16.3% — the equivalent of taking in $450 billion less per year after adjusting for the size of the economy.

Why did this happen? Because during that same time, the Bush tax cuts, their bipartisan extensions, and later the Trump tax cuts slashed taxes, significantly lowering overall revenue. Importantly, a disproportionate share of the benefits from these cuts accrued to very rich Americans, profitable corporations and wealthy heirs.

 

[JohnEngelman]

The real problem began with Ronald Reagan. He claimed he could cut taxes (especially for the rich) raise military spending, and balance the budget without cutting or eliminating popular domestic spending programs. He failed, but Republicans still claim that it is possible.

 

[lovecraft68]

The real problem began with Ronald Reagan. He claimed he could cut taxes (especially for the rich) raise military spending, and balance the budget without cutting or eliminating popular domestic spending programs. He failed, but Republicans still claim that it is possible.

Meanwhile the dems strategy is to continue to print more fake money therefore driving up inflation and devaluing the dollar world wide

A sound alternative.

 

[Sean Renaud]

Meanwhile the dems strategy is to continue to print more fake money therefore driving up inflation and devaluing the dollar world wide

A sound alternative.

Both sides "print money" but it hasn't really pushed inflation to much. That's simply not how it works and we have the lowest inflation of any developed country so clearly what we're doing is working.

 

[Chobham]

America has a SPENDING problem.

 

[Sean Renaud]

America has a SPENDING problem.

We have a revenue problem its that simple back before the Bush tax economists were worried about what would happen if we eliminated the national debt. We really need to work on this whole the rich paying to little for stuff that mostly goes to them.

 

[ll74]

The deficit should not be this deep and it's because of the lack of revenue.

 

[lovecraft68]

I suppose the dems deliberately over blowing Covid to crush an economy to win an election has no bearing on current situations
Just like them spending billions to pay people to stay home even after the vaccine was available led to labor shortages and a myriad of other issues including many dead beats still haven't gone back to work and businesses-especially the medical field-are badly understaffed and going out of business.

But none of that is ever an issue to the left wing parrots.

 

[ll74]

I suppose the dems deliberately over blowing Covid to crush an economy to win an election has no bearing on current situations
Just like them spending billions to pay people to stay home even after the vaccine was available led to labor shortages and a myriad of other issues including many dead beats still haven't gone back to work and businesses-especially the medical field-are badly understaffed and going out of business.

But none of that is ever an issue to the left wing parrots.

Nobody over did COVID. People died because we had no vaccine

 

[Sean Renaud]

I suppose the dems deliberately over blowing Covid to crush an economy to win an election has no bearing on current situations
Just like them spending billions to pay people to stay home even after the vaccine was available led to labor shortages and a myriad of other issues including many dead beats still haven't gone back to work and businesses-especially the medical field-are badly understaffed and going out of business.

But none of that is ever an issue to the left wing parrots.

Yeah that's stupid. Stop being stupid. The reason the medical field are understaffed is because we have such expensive colleges and we need to work on that with a quickness. If anything however we didn't impress upon enough people that Covid was real, and very dangerous. Some how our of the roughly 6 million deaths due to Covid 1 million were Americans. How is than even possible. We aren't the country with the most people, we're not the most densely packed.

 

[lovecraft68]

Fart and odor right on time.

 

[DeluxAuto]

Meanwhile the dems strategy is to continue to print more fake money therefore driving up inflation and devaluing the dollar world wide

America has a SPENDING problem.

Show us.

 

[Sean Renaud]

They can't because both statements are patently false.

 

[YDB95]

They undoubtedly believe we could balance the budget if we just stopped handing out free smartphones and health insurance to illegal immigrants and welfare mothers.

Seriously, I have heard people argue that.

 

[BabyBoomer50s]

Now do federal spending as a % of GDP.

 

[Sean Renaud]

Well....as far back as I go....we f'd up when we separated from The Gold Standard....I do have my pants off lolls...buy anyway...the cool thing about The Gold Standard to me was it was a ratio developed by The Author Of The Principia, Sir Isaac Newton (you know the one with the apple ). Anywho....the ratio was just a number he developed that as long as money...paper (or fiat) money....as long as that ratio held of number of dollars per once of Gold in the World. ..inflation would not take over. But its just cool to me that Sir Isaac Newton is more known for his Laws Of Physics and is accurately defining that an orbit is actually 'elliptical' which gave way to 'modern' physics...kinda cool...but politically I wrote a paper in grad school about that....but that is another story lolls....

The Gold Standard these days would be absolutely horrific cus we'd still have inflation and worse you'd end up having some dude in Alaska finding a piece of gold the size of a gold ball going from relatively poor to and instant multimillionaire.

 

[Dribble]

We can cut 100% of discretionary spending...all of it...and in less than 8 years we are right back here. That is because the problem is non-discretionary spending and the rate it is increasing. If you don't focus on that...no amount of taxation will solve the problem. So to say we "don't have a spending issue" is wrong.

 

[Sean Renaud]

We can cut 100% of discretionary spending...all of it...and in less than 8 years we are right back here. That is because the problem is non-discretionary spending and the rate it is increasing. If you don't focus on that...no amount of taxation will solve the problem. So to say we "don't have a spending issue" is wrong.

I don't even think it would take us 8 years to get back here. If we're not gonna cut the military that only leaves Social Security and Medicaid which technically are discretionary. I think we need to teach people however the the government doesn't actually tax and spend even spending was WAY down it wouldn't a great idea to drop taxes too much unless you like high inflation. If we had zero money for something its a damn good thing that labor comes before capital and important stuff would find a way to get done even if it was just us throwing money at a problem.

I find interesting that so many, mostly conservatives thing money doesn't solve problemsI haven't seen a problem you couldn't throw money at and make it go away. There might be better ways to solve the problem but that has a damn near 100% success rate.

 

[ishtat]

Meanwhile the dems strategy is to continue to print more fake money therefore driving up inflation and devaluing the dollar world wide

Meanwhile the dems strategy is to continue to print more fake money therefore driving up inflation and devaluing the dollar world wide

LC. Central Bankers throughout the world would be fascinated if you could show them a single major trading currency, against which the US dollar has devalued in the past 3 years.

 

[JohnEngelman]

America has a SPENDING problem.

Republican politicians who list specific domestic spending programs they want to cut or eliminate lose elections.

Beginning with President Reagan we have had a taxing problem. Most Americans want higher taxes on the rich.

 

[ll74]

Because people aren’t having kids and therefore the tax base is nonexistent

Lol

 

[Pad_Foot]

Increase Social Security deductions people are king longer!!
Take of the caps
That problem is solved !!

 

[JaxRhapsody]

I wonder how bad we'd be if manufacturing stayed here?

 

[Sean Renaud]

Because people aren’t having kids and therefore the tax base is nonexistent

People not having kids is largely something that started with milleniels. Turns out when you can't make the rent by yourself, it irresponsible to bring another life into the world. Literally every problem we have would go away if we made CLOSER to the same amounts of money.

 

[Pad_Foot]

Hell! Go back to Reagan borrowing from what should have been a LOCKBOX and not open to the House, Senate or President pilfering!!

You want something ? Pay for it!! Hell isn’t that their motto??