As anyone with half a brain predicted, Trump’s big cut in business taxes has caused a serious decrease in federal tax revenue from corporations. With large numbers of corporations no longer paying any taxes at all, and even getting refunds, the combination of the rate cut and new loopholes has made the deficit far worse while doing almost nothing for the economy.
Federal tax payments by big businesses are falling much faster than anticipated in the wake of Republicans’ tax cuts, providing ammunition to Democrats who are calling for corporate tax increases.
The U.S. Treasury saw a 31 percent drop in corporate tax revenues last year, almost twice the decline official budget forecasters had predicted. Receipts were projected to rebound sharply this year, but so far they’ve only continued to fall, down by almost 9 percent or $11 billion.Though business profits remain healthy and the economy is strong, total corporate taxes are at the lowest levels seen in more than 50 years.
This is an even bigger drop than the Congressional Budget Office predicted, a prediction that Republicans claimed was biased and wrong. So much for the tax cuts paying for themselves. And the economy has continued along pretty much the same trajectory it was going in in Obama’s last few years, so it also hasn’t done much of anything to boost the economy. And no matter how many times this exact scenario plays out, Republicans buy the lie that tax cuts pay for themselves and spur high rates of growth. We need a stronger word that gullible.