No
one needs to pay for it. The act cut the tax rates, not the revenues. The
top rate for individuals was reduced a little, but the top rate for corporations
was reduced a lot.
“So
what’s the big deal about top rates? Don’t the bottom rates count too?”
Not
nearly as much. Corporations and wealthy people provide jobs for the rest of
us. When their rates are too high, too much of the profits go to the government,
making the wealthy unwilling to risk their money expanding their businesses.
But
when the top tax rates are lowered, the wealthy start expanding and hire folks
like you and me. This stimulates the economy, which in turn brings in
additional government revenues.
A
more active economy helps the poor most. With wages rising, folks at the bottom
can forego welfare and find jobs.
Presidents
Harding and Coolidge cut the tax rates in the 1920s. The economy and federal
revenues both soared.
Presidents
Kennedy and Johnson did it in the 1960s. Same results.
President
Reagan cut the rates in the 1980s. Again, the economy and revenues soared.
The
2018 tax act and the repeal of damaging EPA regulations were of great consequence.
Because of them, the House and Senate will likely remain Republican in November.
I would even hazard a guess that the presidency will remain Republican in 2020.
