Without evidence, Bloomberg news claimed that the “2017 tax overhaul . . . is hurtling the budget deficit toward $1 trillion territory.” The financial news site went on to say that the “law largely rewarded the wealthy and corporations.”
It takes a lot of courage to make two grossly false claims in a respected publication in less than 40 words. But as the national debt continues to grow—and as Republicans continue to offer bicameral solutions for tackling this issue—let’s do a reality check on the GOP Tax Cuts’ impact on the wallets of the federal government and middle-class families.
Reality Check 1: Spending, not revenues, responsible for deficit.
According to the nonpartisan Congressional Budget Office, total receipts are “up by 3 percent in the first 10 months” of this fiscal year.
The reason why? Income and payroll taxes collected by the federal government rose.
In a growing economy where more people are working and paychecks are rising, the government brings in more money – even with lower tax rates for workers and businesses.
And while that growth is important, it alone cannot solve our debt. CBO also reports that federal spending increased nearly 8 percent this year.
D.C. does not have a revenue problem, which is why revenues hit an all-time high this year. It has a spending problem – and one that Democrats have shown zero interest in solving as they continue to promote $90 trillion handouts.
Reality Check 2: Really, families and small businesses received the biggest share of tax cuts.
Despite never-ending claims from the Left and the media, the Tax Cuts and Jobs Act did not “largely” go to corporations. According to the nonpartisan Joint Committee on Taxation, more than three out of every four dollars in the tax overhaul went to workers and small businesses.
Over three out of every four. 77 percent of the tax overhaul went into the pockets of working families and Main Street businesses who need it most, not Wall Street. Even the New York Times was forced to admit that “a large majority of Americans would owe less because of the law.”
Additionally, data from the nonpartisan Tax Foundation confirms that “tax liability fell for all income groups except those earning over $1 million in 2018.”
Simply Put: Tax reform was designed to spur our economy and give families first say over their money. That is happening, but unless both parties come together to address Washington’s endless spending patterns, deficits will continue to soar and the next generation will be forced to pay the consequences.