Personally I still have big problems with the tax code but our deficit problem is not because of tax cuts people. This should be a bi-partisan understanding of fact. We have a spending problem in America not a taxing problem. Add to that an ever increasing percentage of people who think others who have more for some reason owe them something. We are heading towards debt oblivion. https://www.investors.com/politics/editorials/trump-tax-cuts-federal-revenues-deficits/
How Congressional Spending and Taxing Affects our Economy
Congress’ unlimited spending powers, fiat currency, floating currency exchange rates, and quasi-permanent federal income* tax brackets have the following consequences:
1. For a given set of federal income tax brackets, the ratio of annual federal income tax revenue to total annual Congressional spending is fairly constant, increasing slightly with spending, from which federal income tax revenue may be accurately predicted.
2. Planning a Congressional budget is a meaningless task since there is no spending limit and, with fixed tax rates, the tax revenue is effectively determined by the spending.
3. For a given tariff/trading policy and assuming gradual and similar technological improvement rates among trading partners, the ratio of domestic after-tax savings (a.k.a. "deficit spending" deposited in US banks) to total after-tax savings (including deposits in foreign banks) changes slowly.
4. The primary goal of the economy is the improvement of infrastructure which determines the security and quality of life of our future generations.
5. The improvement of infrastructure is directly related to the increase of Congressional spending on infrastructure and to the increase of annual after-tax savings.
6. The amount of Congressional spending is limited only by the onset of harmful inflation (> 3% annually). When due to excessive bank credit, inflation is controlled by the Fed’s federal fund interest rate. Inflation due to a shortage of strategic materials (oil, etc.) can be limited only by rationing and price controls. Inflation due to shortages of skilled labor can be limited by free, expense-paid education (including crafts) for all. Inflation due to shortages of important commodities can be limited only by planning production levels.
7. Inflation is directly related to the scarcity of physical resources and, therefore, to the amount of Congressional spending (almost entirely on physical resources).
8. Inflation is inversely related to annual federal income tax revenue and to the ratio defined in paragraph 1. To decrease the risk of inflation, Congress must either spend less on infrastructure or increase federal income tax rates. To maximize the improvement of infrastructure, Congress must maximize both annual spending on infrastructure and federal income tax rates. Cutting Congressional spending or cutting federal income tax rates decreases the potential level of infrastructure quality/quantity.
9. Thus, there is an inverse relationship between the state of our infrastructure and the profits of private enterprise gained by reduction of federal income tax rates.
10. Prosperity increases directly with both the state of our infrastructure and the domestic per capita after-tax savings, both of which vary directly with Congressional spending and with federal income tax rates that permit higher Congressional spending.
*Statements referring to federal income tax apply equally to federal estate tax.
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