How the Trump Tax Cut Is Helping to Push the Federal Deficit to $1 Trillion

[swag]

Last edited Wed Jul 25, 2018, 12:34 PM - Edit history (1)

https://www.nytimes.com/2018/07/25/business/trump-corporate-tax-cut-deficit.html

July 25, 2018

By Jim Tankersley

In the trough of the Great Recession in 2009, as companies laid off hundreds of thousands of workers each month, the amount of corporate income taxes collected by the federal government plunged by almost a third. It was the largest quarterly drop since the Commerce Department began compiling the data in the 1940s. No other period came close.

Until this year.

In the first half of 2018, corporate tax collections dropped to historically low levels as a share of the economy, according to data from the Bureau of Economic Analysis. That is pushing up the federal budget deficit much faster than economists had predicted.

The reason is President Trump’s tax cuts. The new law introduced a standard corporate rate of 21 percent, down from a high of 35 percent, and allowed companies to immediately deduct many new investments. As companies operate with a lower tax burden and a greater ability to offset what they owe, the federal government is receiving far less revenue than it would have under the previous tax system.

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[angstlessk]

1. OOPS! No link :-)

[swag]

4. Thanks! Link added.

[MiniMe]

2. Helping? Helping?? The tax cuts are shoving the deficit to $1Trillion

It is all part of their plan to gut Social Security, Medicare, and Medicaid

[Wellstone ruled]

3. Thank you for paying attention.

We older posters have seen this a couple times before. Hopefully our younger posters prepare them selves for the mega finical nightmare that is only months or maybe weeks away. When GM looses $2.40 a share today and Ford drops 40 cents,baby hang on. People are heading for the Unemployment lines within days instead of weeks.

We just saw Enterprise Values of our two major Auto Companies reduced by Billions this morning.