Comments by "Tim Trewyn" (@timtrewyn453) on "ABC News" channel.

  1. 5
  2. 4
  3. 3
  4. 2
  5. 2
  6. 2
  7. 2
  8. 2
  9.  @alphaclam  Not at all. But what is being held out here is that tax cuts CAUSE increases in tax revenue. I think there is more to it, and that tax cuts' effects are indirect and can be negative. Increased revenue is likely when the government increases borrowing. Government borrowing, as Donald Trump understood very well and Biden has copied, stimulates the economy. A great deal of this borrowed money is distributed through payrolls which deduct FICA and Medicare taxes and federal withholding for taxes. How do I know this? I am an employer and I pay these taxes. So a portion of the money the government borrows comes back to the government through payroll taxes. State revenues go up because some of this borrowed money pays state sales taxes on purchases. It follows that tax revenues and economic activity might very well go down if the federal budget went from running deficits to being balanced. Republicans would prefer that happens when Democrats are in the Oval Office. The Trump administration was not shy about borrowing money. They knew it would give them economic bragging rights. The federal budget does not need to be balanced. It does need to preserve the value of US credit. That is the issue. The lending market is less confident in US credit because it has seen, under Biden and Trump, that the national debt has gone up too fast. The challenge is to bridle that debt growth and improve US credit without a recession. That's difficult. This is why I do not agree that there is direct causation between tax cuts and increases in tax revenues.
    2
  10. 1
  11. 1
  12. 1
  13. 1
  14. 1
  15. 1
  16. 1
  17. 1
  18. 1
  19. 1
  20. 1
  21. 1
  22. 1
  23. 1
  24. 1
  25. 1
  26. 1
  27. 1
  28. 1