The Fall f the United States, The End

[Alan Roehrich]

Originally Posted by Eddies66

The theory of supply-side economics says the growth from tax cuts is enough to replace the tax revenue lost if the tax rate is above 50% of income. When tax rates are lower, the cuts worsen the national debt without boosting growth enough to replace lost revenue. Reagan and Trump used it and both increased the national debt. Under Trump (2015-2020) the Debt to GDP ratio went from 100% to 129%

Still wrong. Record revenue is record revenue. The tax cuts created record revenue. If spending outpaces that record revenue, it's the spending that causes debt, not the tax cuts. And spending outpaced revenue, in both cases. It does not matter how high tax rates or revenue are, if spending outpaces the revenue. And in the modern era, it almost always does.


Spending is a problem for both sides. Almost the entire debt can be attributed to the entitlements created by the "war on poverty", which is an abject failure. People cannot be bought out of poverty. Like lottery winners, people who get free money to buy them out of poverty are broke again almost immediately. They're not broke because they can't make money, they're broke because they won't make money and won't manage money.