The Biden Economy

[whell]

Originally Posted by finnbow

Listen, I fully understand supply-side theory and wish it were true. The trouble is that it isn't. I guess you still buy into Steve Mnuchin's sophistry when he said of Trump's tax cuts, “Not only will this tax plan pay for itself but it will pay down debt.” How'd that work out?

Not too bad, actually. Revenue increased each year with the exception of the 2020 pandemic fiscal year. But by 2021, the Federal Govt set another record for corporate tax receipts, and Biden continued the Trump-era tax cuts. I think some of them are still in place.

Regarding the "it'll pay for itself" statement, that was made prior to Trump signing another massive budget bill in 2018, where he said, "I'll never do this again".

The problem really isn't revenue. Revenue for the most part goes up every year. The problem, for the most part, is that the DC crowd also outspends what it budgeted nearly every year.

2022 is just one example:

• The federal government collected $5.0 trillion in revenue in fiscal year 2022 (FY 2022) — or $15,098 per person.
• The federal government spent $6.5 trillion in FY 2022 — or $19,434 per person — including funds distributed to states.
• Federal revenue increased 14.3% in FY 2022 after collecting more personal income taxes, social security taxes, and auctioning spectrum for commercial wireless and broadcast use.
• Federal spending decreased 12.4% in FY 2022 after remaining relatively flat in FY 2021.
• The federal government spent 28.7% more than it collected in FY 2022, resulting in a $1.45 trillion deficit.
• The national debt hit $30.9 trillion last fiscal year.

This happens under both Republicans and Democrats so there's plenty of blame to share. Dems love to crow about Clinton's "surplus" in the late '90's, but there was not shortage of Dems who also wanted to spend that surplus, calling it "the peace dividend" (an Orwellian reference if there ever was one). Republicans talk a good game but it's rare that Repubs show they have the nuts to take the problem on.

And on it goes...