The Trump Tax Cuts were good for the economy.
To: Miriam Flisser.
From: Michael Kusi
Topic: The Trump Tax Cuts.
Date: 8/14/24.
??????????????????????? The Trump Tax Cuts were good for the American Economy
Welcome and good afternoon. Today I am here to talk about the Trump Tax Cuts, and how they were good for the American economy. The 2017 Trump tax cuts were both pro-growth and pro-family. They were pro-growth in that they facilitated a strong economy that benefited every American’s pocket. They were pro-family in that certain provisions of the Trump Tax Cuts, such as the itemized deductions and the child tax credits, gave relief to Americans who sorely needed it.
?However, certain aspects of the Trump Tax Cuts are set to expire in 2025. Under the 2017 Trump tax cuts, real median household income surged by $5,000 and real wages increased ?by 4.9 percent in the two years after the legislation was signed into law from 2017-2019. The economy was able to expand ?an entire percentage point faster than projected, and we had sustained 3 percent growth. The troubling trend of American companies making their headquarters in other countries and leaving the United States was halted.
The problem is that If the Trump tax cuts are not extended in 2025 ?working Americans would see their taxes increased and the economy would falter. Starting in 2026, if the next presidential administration does not extend the Trump tax cuts, then ?the average family of four who earn ?$75,000 will see a $1,500 tax increase that they can ill-afford to pay. Main Street businesses will have to suffer a 43.4 percent tax rate that would be a substantial increase over what they pay now. The Child Tax Credit would be cut by 50% which will hurt working parents who need childcare.
A family owned small business such as a farm or a ranch will be burdened by the death tax and forced to mitigate their losses by selling land to pay the taxes on them. This administration’s budget for this year has a $ 7 trillion tax increase on the people who could ill afford to pay. We must look out for the worker and recognize that it is in the better part of a government’s nature to reduce the tax burden on people. After Congress passed the 2017 tax cuts, Americans paid less in taxes so they had more discretionary funds. The major people who benefited from the tax cuts were the average hard working American.
The?Tax Cuts and Jobs Act?increased the death tax exemption which facilitated more rural businesses and ranches to be passed down in the family after someone died. The trouble with the opposition is that they like death taxes which stifle the rural economy. This administration in the federal government wants to extend the death tax to more rural families and repeal exemptions. This would be a crushing burden on tax payers who already have to go through the loss of a loved one. This would force many rural businesses, ranches and farms to close because they cannot afford the costs.
The Tax Cuts and Jobs Act put to a stop the troubling tendency of of U.S. companies to relocate to different countries. The act lowered the corporate income tax from a stifling level that was one of the highest in the world, to a level that was more competitive. ?This Administration has proposed a global corporate minimum tax that it is facilitating with other countries. This would give up the taxing authority of the US to other countries who have regressive tax systems. This would also cost $120 billion in taxes to implement. This is a violation of Congress’s Taxing Power under the Constitution to let foreign countries tax our economy.
The inflation under the current administration has cost middle class families more than $12,000 every year. Having inflation that reaches up to 9% in a year every month is not good for anyone, and it has made everything cost more. These costs have been passed on to the American taxpayer. This inflation is like a tax that Americans did not vote for and do not support, yet it is taking from people’s paychecks every month. The Trump Tax cuts and tax policy cut costs for the average American working family.
领英推荐
The opposition would like to claim that federal tax revenues would never be able to be increased when taxes are cut. This is simply not true. Under the Trump Tax cuts, federal revenue reached a high of $4.9 trillion, which was more than any federal revenue before. ?This was more than $1.6 trillion above what the tax revenue was before the Trump tax cuts took effect. It is far from being trickle down, because the tax cuts helped to facilitate growth and the economy. This was also $884 billion more than the Congressional Budget Office’s 2022 predictions. As it turns out, regressive tax policies that incessantly focus on tax increases are not even good for increasing tax revenue. ?The top corporate tax rate was cut from 35 percent to 21 percent.
Corporate tax revenues were $425 billion, which was more than $128 billion more. It was also higher than the Congressional Budget Office 2022 predictions. As it turns out, people and corporations having more money means more good money inside the economy. Individual tax revenues was $2.6 trillion. The Trump tax Cuts made individual tax revenues increase by more than $1 trillion than before they were passed. This is also ?$642 billion higher than CBO’s projections for 2022,and this is great because because the point of every economic bill is to produce revenue. The Trump Tax Cuts produced a surplus of revenue for the economy.
The tax revenues were up by $205 billion every year over CBO’s predictions, and this facilitates a booming economy. According to the White House Office of Management and Budget, For ?every additional one percent of sustained GDP growth, there is a corresponding increase in tax revenues by 600 billion over a 5 years period ?and $2.8 trillion over a ?10 years period.
The poverty rate was the lowest it has been since 1973 because of the Trump tax cuts. And African-Americans and Hispanics also benefited because their poverty rate was lower. The lowest 20 percent of workers had their federal tax rate cut to its lowest since 1983. This means more money for people to live life and do what they want to do. Americans who earned under $100,00 had a tax cut that averaged 16 percent. This is not trickle-down tax cuts for the rich, but tax cuts which benefited everyone.
If the Trump tax cuts were to expire, the situation would be dire. A five person household who earned $100,00 would have a tax increase of $7,500. The Child Tax Credit would be cut by $1,000 to a mere $1,000. This is not enough for families who need daycare. The deduction that most taxpayers utilize in their taxes would be cut by 50%, which would lead to an increase in the taxes that they have to pay. The 20 percent deduction that small businesses need to be on an equal footing with bigger corporations would be repealed, and small business would have a 43.4 percent tax rate. This tax rate would be stifling, and would do nothing to increase tax revenue that is sorely needed.
The Small Business Deduction ?created what is known as the 199(a) deduction. This facilitates the deduction of up to 20% of the business income of a small business, ?which allows people to reinvest in their business. If Congress does not allow the small business deduction to continue, there will be a major tax increase on small businesses.
Because the corporate tax rate is more competitive, more jobs are coming back to the US. Corporations who have set up their business headquarters overseas are now coming back to America because they will not have to pay regressive tax rates. Over a more than 30 year period from 1983 to 2015, there were 60 companies who relocated overseas. Now under the Tax Cuts and Jobs Acts there have been 0 companies who have left.
The Trump tax cuts have provided a boon to the American economy. It has helped the average American with his or her tax bill, and has facilitated an increase in revenue. When I am elected your Congresswoman I will vote to make the tax cuts permanent, because they are good for the economy, good for the people and good for the average hardworking American.
?
?
?