(NationalSentinel) Tax Reform: Throughout the budget-busting, high-taxation and debt-ballooning years of Barack Obama, the Washington Post said nothing.
Now that Donald J. Trump is in office, suddenly the Left-wing Post is worried about the national debt.
Trump has said he wants to slash the U.S. corporate tax rate from 39 percent – the highest in the developed world – to 15 percent. He says that’s necessary to jump-start business expansion and job growth, and he’s right about that.
But because the hack reporters at the Post are so filled with Trump hate, they are doubling down on the myth that cutting taxes – corporate taxes especially – will worsen the national debt.
The paper, in a Monday story, claimed:
President Trump is pursuing a drastic cut in the corporate tax rate, a move that is likely to grow the national debt and breach a long-held Republican goal of curbing federal borrowing.
The president has instructed advisers to propose cutting the corporate tax rate from 35 percent to 15 percent, according to White House officials who said they were not authorized to speak publicly about the plan. The rate reduction — which independent budget experts say could cost the federal government $2.4 trillion over a decade — is larger than what House Republicans had proposed in their own plan.
First of all, every large corporate tax cut in history has produced a net increase in federal income tax revenues, because the resultant business expansion and job growth created multitudes of new taxpayers.
Secondly, as it stands, corporations have trillions of dollars parked in accounts overseas that they refuse to repatriate because of the monumentally high corporate tax rate. If that rate gets cut by nearly 60 percent, as Trump is proposing, those trillions will make their way back into the U.S. economy, which will stimulate even more growth and create even more income tax revenue for the federal Treasury.
Third, Republicans historically have been against deficit spending, not borrowing. Real conservatives want to see federal spending rolled back; if that happens, there won’t be any need to borrow.
But here’s something else the Post won’t tell you.
Budgetary spending has nothing at all to do with the amount of taxes and other revenues the federal government brings in. Each and every year, despite the record amounts of taxes being raised through increases passed during the Obama years, the federal government still deficit spends.
That’s because a) some two-thirds of the budget calls for mandatory spending on entitlement programs; and b) budgeting for the remaining federal departments and agencies always begins at the previous year’s level. They never go down; they only go up.
It’s the same for FY2017: The Congressional Budget Office is predicting federal income of $3.4 trillion, but outlays of $4.0 trillion, leaving a deficit of $559 billion.
It doesn’t matter how much income the government takes in – even though it would collect more if Trump’s corporate rate cut is approved by Congress – because the government’s budget doesn’t depend on income. It spends what it spends irrespective of the money it collects.
The Post, in once again attempting to portray Trump in a bad light, goes out of its way to be dishonest and disingenuous with its readers. Then again, most of them are #nevertrumpers anyway.