by Mitch Kokai
Senior Political Analyst, John Locke Foundation
President Joe Biden promised a “fundamental break” with “trickle-down economics” in a speech on Wednesday in which he relied on a number of misleading claims to make his point.
Touting “Bidenomics,” the White House’s name for its economic agenda heading into the 2024 race, Biden floated a plan that would involve spending more taxpayer money and boosting union labor.
But his assessment of how well the economy has performed under his leadership was inaccurate. Most disapprove of the way Biden has handled the economy; only 34% of U.S. adults think Biden has had successful economic policies. …
… “My predecessor enacted the latest iteration of the failed theory. Tax cuts for the wealthy. It wasn’t paid for, and the estimated cost of his tax cut was $2 trillion.”
Former President Donald Trump’s tax cuts did not benefit only the wealthy, and they didn’t cost the government nearly as much as critics claimed.
Last year, the Congressional Budget Office actually said the government is expected to collect more revenue over the next decade than it had projected before the tax cuts were signed into law.
In fiscal 2018, the first year after Trump signed the tax cuts into law, the federal government actually collected slightly more revenue overall than it had the previous year.
Corporate tax revenues exceeded CBO’s projections for 2018, the first year after the Trump tax cuts were in effect, and it blew well past expectations in 2022 after a dip during the pandemic.
The decrease in the corporate tax rate also coincided with a boom in private investment, which economists say led to wage growth and job creation.
And while the tax cuts did offer a benefit to the highest earners, they also helped middle- and low-income people as well. Most taxpayers experienced at least some type of reduction to their tax bill, helping average household incomes to rise.