Remember How Trump’s People Told You Those Massive Corporate Tax Cuts Were Going To Pay For Themselves? They’re Not. On An Almost Unimaginable Scale
U.S. corporate tax revenues are dropping more sharply than they did during the Great Recession, which was the biggest economic downturn most of us have ever seen.
The New York Times reports that taxes paid by corporations have plunged to “historically low levels” in the first 6 months of this year, due to the Trump/Republican tax cuts.
Here’s a graphic from the Times:
And the economy is booming. Which at most other times would mean the government would be flooded with tax revenues. Of course that economic boom is partly due to the tax cuts, so should that effect ever cool off, the numbers would drop off even more and it could turn into a real revenue drought.
We should point out that some benefits to corporations in the new tax law were frontloaded, meaning the write-offs available immediately were greater than they will be in the future. So that could lead to a small uptick in revenues later on. But again, that can happen only if the economy continues booming.
But as we’ve repeatedly contended, how this plays out doesn’t really matter to a lot of Republicans: they see it as a win-win no matter what. Because should the Treasury’s coffers run dry, it’ll give them a chance to start slashing away at programs like Social Security and Medicare because — they’ll argue — they don’t have a choice anymore. It’ll be the only fix available for a crisis they themselves created (but that part of it won’t matter). Speaker of the House Paul Ryan has made no secret of the fact that he wants to attack social programs. However, the President has said those programs are sacrosanct and won’t be touched.
Which leads us to wrap up with a question: how deeply do you trust Trump to keep that promise?