this post was submitted on 21 Oct 2023
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Tax revenues increased after those tax cuts. It will help to read about the Laffer curve. There is a kind if elasticity of demand for tax revenue. When raising taxes, some proportion of economic activity, including people working, is reduced. This can lead to a net decrease in tax revenue. The opposite is also true. The Laffer curve stipulates that there is an optimal tax efficiency on the vertex.
Of course this has nothing to do with fair distribution. It simply means that, paradoxically, higher taxes would reduce the size of the federal budget.
Corporate tax needs to be increased.
Even if it results in less tax revenue, and poor people becoming even poorer? I don’t agree. I think we should help poor people, not hurt them.
P.L. 115-97 permanently reduced the 35% CIT rate on ECI to a 21% flat rate for tax years beginning after 31 December 2017.
https://www.pgpf.org/blog/2023/04/six-charts-that-show-how-low-corporate-tax-revenues-are-in-the-united-states-right-now
We changed the corporate tax rate in 2017 and 2014 and have been collecting less and less taxes. Since corporations l are people, and they make the most amount of taxable income, we should be charging them more! They use public services such as roads and cause more pollution etc we should not be subsidizing their use.
As I explained above, this is not correct. In fact, the opposite is true. Tax revenue continues to trend up. They did not not decrease after 2014 or 2017.