Now that the Russian collusion witch hunt has all but failed following Michael Cohen’s testimony, the Democrats are really grasping for ways to attack President Trump. The truth is that he’s been winning on all fronts. So, rather than acknowledge how good things are, the left is just going to lie.
One of their favorite topics for deception is the economy and tax cuts. So, we’re going to face each of their favorite lies head on, and we’re going to see how the tax cuts have done after a full year.
Tax Cuts Caused the National Debt
The left loves to try to stick it to Republicans and blame them for the national debt. After all, conservatives are supposed to be for small government and fiscal responsibility. The claim goes something like this. Since we already have a deficit, cutting taxes raises the deficit and leads to a runaway national debt. You can see how this is clever. Cutting taxes could potentially contribute to national debt. Still, this notion is dead wrong for a few reasons.
First, there’s a deficit without the tax cuts. In fact, under Obama, the national debt made it all the way to $18 trillion. Since the entitlements from that era are still in place, we now have a debt of $20 trillion. In 2018, the deficit was just shy of $800 billion. These are all big numbers.
As for the tax cuts, they accounted for 0.01 percent of the current national debt. Where the deficit is concerned, tax cuts are less than 20 percent.
In reality, two-thirds of the federal budget is categorized as mandatory spending. That two-thirds pays for Social Security, Medicare and Medicaid. That’s it. If those programs were cut by 10 percent, we would be well on our way to a balanced budget. If they were abolished, we would have a $2 trillion surplus. You can see how these numbers don’t compare. Blaming President Trump’s tax cuts for the debt is utterly ridiculous.
Tax Cuts Were Only for the Rich
More than 90 percent of Americans who file taxes received a cut. Read that number again. The left has lied about this until they were blue in the face, and then they lied more. The tax cuts were as evenly distributed as possible, and no matter which tax bracket you’re in, the savings were somewhere between two and five percent.
The lie stems from bad math. If a billionaire and someone earning minimum wage both get a five-percent tax break, the billionaire gets to take home a larger lump of cash. Everyone knows that. The left tries to twist this truth to make it sound like the tax cuts were unfair. It’s nonsense.
The other half of this lie applies to corporate taxes. Those numbers were slashed by a lot more than personal taxes, but that doesn’t mean they favored the rich. Fortune 500 companies already had effective tax rates at or near zero. When a company is big enough, they have the means to move money around until they qualify for more tax breaks.
What the left won’t acknowledge is that the corporate tax cuts only actually made a difference for small and medium businesses. These aren’t billion-dollar companies. They’re the local mom and pop shops that struggle to get by. With the Trump tax cuts, they’ve all been thriving, and that leads us right into the next myth.
Tax Cuts Didn’t Help Jobs
This is a pretty bold lie. In 2018, our country reversed several troubling job trends. First was job growth. From 2015 through 2017, job growth declined steadily. 2018 completely undid the damage and added roughly as many jobs as 2015.
That’s a bigger deal than it seems. In 2015, the recession was technically over, but unemployment was still around eight percent. Now, we have record unemployment and we’re seeing an acceleration in job growth. That acceleration has continued into 2019, by the way. It’s a big deal.
The second trend is wage growth. For all of Obama’s tenure, wage growth was stagnant and hovered right around inflation. In 2018, wage growth rocketed above three percent for the first time since 2005. It’s now double inflation, and it’s all thanks to the tax cuts.
Remember those small and medium businesses? They’ve been hiring like crazy, but since unemployment is low, they’ve had to offer bigger wages to compete for workers. Now we have more jobs and higher wages than ever before in our country’s history.
Trump Lied About GDP Growth
This one is pretty silly. When President Trump pushed for tax cuts, he claimed that the GDP growth would ultimately bring in more tax revenue than was lost due to lowering rates. The left will say that since it didn’t happen within the first 12 months, President Trump was lying. No one with any sense ever believed that this was a one-year plan. Instead, it was expected to take 5 to 10 years to happen. Well, we’re now on pace to beat those numbers—by several years.
If trends hold to 2018 levels (and all signs suggest everything is growing even faster now), then GDP growth will completely pay for the tax cuts by the end of 2021. Even better, if nothing changed, we would have a budget surplus by 2029.
Now, obviously the economy is capable of changing over the next decade. Also, there’s zero chance that Democrats will allow the budget to stay where it is for 10 whole years. They’re going to increase spending every chance they get.
The point is that President Trump was absolutely correct. The GDP growth that is due to tax cuts is on track to grow overall tax revenue.
These are the most common talking points on the left, and they’re all completely wrong. The tax cuts have benefited every single American, and they’ve done it in big ways. What we don’t have time to cover today is how the economic growth has helped reduce poverty and violent crime.
The overall benefits that come from a strong economy are almost innumerable. President Trump’s tax cuts are a crowning achievement, and if he did nothing else, it would be enough to say he made America great again.