Economic Madness at Americas Expense: Tax Cuts are the biggest cause of the Debt

To: Congressional Committee on Economic Policy Subject: The Fiscal Consequences of Income Tax Cuts on Government Revenue

Overview: The persistent claim that income tax cuts—particularly on high earners—increase government revenue is not supported by economic data or historical precedent. Instead, these cuts have repeatedly led to significant deficits, undermining long-term fiscal stability. The following analysis outlines the economic impact of major tax cuts over the last several decades, demonstrating that revenue loss is the primary outcome, not revenue growth.

Key Findings:

1. Historical Revenue Decline Following Tax Cuts:
2. Empirical Data on Tax Cuts and Revenue:
3. Wealth Accumulation vs. Economic Circulation:
4. Deficit Expansion and National Debt:

Conclusion & Policy Recommendation: Congress should reject the false premise that tax cuts inherently increase revenue. Instead, responsible tax policy should balance incentives for economic growth with fiscal sustainability. Targeted tax relief for lower-income earners and direct infrastructure investment yield demonstrably higher returns than broad-based income tax cuts. Restoring progressive taxation and closing corporate loopholes would stabilize long-term revenues while promoting economic equity.

References:

• Congressional Budget Office, "The Budget and Economic Outlook," 2021 & 2023.
• U.S. Treasury Department, Federal Revenue Analysis, 2018.
• Center on Budget and Policy Priorities, "Tax Cuts and Deficits," 2022.
• Historical Budget Data, Office of Management and Budget, 1980-2023.
• Brookings Institution, "The Impact of the 2017 Tax Cuts on Growth and Revenue," 2022.