TAX CUTS ARE NOT DRIVING THE U.S. DEFICIT

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Key Points:

  • The federal deficit has been a controversial subject as the Biden Administration blames the 2017 Tax Cuts and Jobs Act and aims to increase taxes as a solution.
  • However, data from the Congressional Budget Office shows the contrary.
  • The government collected $627 billion more than it did in fiscal 2020, pulling in a record-high $4.05 trillion.
  • Tax collections surged pretty much across the board. Individual income taxes were up $443 billion, a 27.5% increase.
  • Compared with pre-pandemic levels in 2019, the 2021 tax haul is a third of a trillion dollars higher.
  • Corporate income taxes increased to $370 billion in 2021 from $212 billion in 2020, a 75% increase.
  • In fact, the Tax Foundation reports that corporations paid $73 billion more in taxes last year than they paid the year before Congress cut their taxes.
Source White House Tax Foundation