A common liberal talking point is that the Trump tax cut added one trillion dollars to our debt. Did it really? It did cut one trillion in taxes. Was the entire tax cut added to our debt? The solution is found by looking at the government’s annual revenue.
If the talking point is true then we would see a decline in government revenue. This chart shows that the revenue did not decrease after the tax cut.
The Trump tax cuts were approved in 2017 and implemented in 2018. You will notice that the government revenue was the same in 2018 and 2017. Why? Increased productivity produces more tax revenue.
Our $22T debt problem is not due to the lack of revenue but to our addiction to overspending. The budgets are not based on the revenue but on the previous year’s bloated budget. Overspending is called the deficit and accumulation of deficits is our debt. Unfortunately, the common ground for Republicans and Democrats in Washington is a bigger government.
The trillion-dollar tax cut is a talking point to motivate the left’s base. Cutting spending is a talking point to motivate the right’s base. It’s all smoke and mirrors. The left is happy to keep growing spending and the right is happy to cut taxes. Most of the battles are over social issues like abortion, gun control, LGBTQ issues, and judicial nominees.
The hard fiscal questions are not debated. Obamacare passed because the Democrats controlled the White House, Congress, and a filibuster-proof Senate. Obama promised to use his pen (executive orders) and phone (calls to administrative heads) to affect policy changes without Congress. Trump is employing the same tactics.