(08-02-2018, 04:29 PM)mikesez Wrote:

(08-02-2018, 04:18 PM)flsprtsgod Wrote: These tax cuts are fueling economic growth that will increase tax revenue. This isn't rocket surgery no matter how you try to compartmentalize it.

That's plausible, but, the data do not show this.  No matter how you slice it federal revenue is shrinking once you account for inflation.

It’s not only plausible but absolute, as a reduction in max tax base (tax cuts) creates a causal effect of increased revenue. Look at this historical chart and you can see the correlation of the two data sets. Outside of climbing out of deep recessions, tax cuts cause growth, thereby revenue. FYI, we are of a few countries to include inflation adjustments within tax tables so your inflation points have little meaning. Not often we let it lag. Also, revenues for 2018 are ahead of pace for early estimates of $3.34 trillion and pushing 2019 estimates over $3.42 trillion. Now, with that said, it is usually customary to increase taxes during a strong economy and decrease during a weak one. Something will need to give for long term sustainability and most likely the first thing we’ll see is increased interest rates.

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