Did Trump Tax Cuts Lower Or Raise Federal Revenue?

PHOTO: YouTube Screenshot

Article by Bryan Howard

December 2, 2018

The left have been screaming about Trump tax cuts has been killing our budget, and now we can’t pay for our programs. However, does that claim really hold true when looking at the facts?

There has been an on going debate between the right and left on philosophy on what brings in the most revenue for the Federal Government. People on the left claim the higher you tax the more money the Federal Government brings in, this would be called Keynesian economics. President Barack Obama was a firm believer in this system.

While, people on the right believe in supply side economics, which is when you have a lower tax system that creates new jobs and innovation. In theory it would mean more money for the Government because more people are working and paying taxes, even though each person is paying less in taxes than before. President Ronald Reagan and President Donald Trump have both believed in this theory and implemented it.

According to the left when President Trump enacted his tax cuts in particular on corporations the federal revenue should have went way down. We need to investigate to see how this holds up to the numbers.

Below we will establish the tax Brackets and Federal Revenue for Obama’s last four years and Trump’s two years. Obama had higher taxes which means their should have been a drop in Federal Revenue with tax cuts.

2012 Obama Tax Bracket

2012 tax rates

Tax rate

Single filers Married filing jointly or qualifying widow/widower Married filing separately Head of household
10% Up to $8,700 Up to $17,400 Up to $8,700 Up to $12,400
15% $8,701 – $35,350 $17,401 – $70,700 $8,701- $35,350 $12,401 – $47,350
25% $35,351 – $85,650 $70,701 – $142,700 $35,351 – $71,350 $47,351 – $122,300
28% $85,651 – $178,650 $142,701 – $217,450 $71,351 – $108,725 $122,301 – $198,050
33% $178,651 – $388,350 $217,451 – $388,350 $108,726 – $194,175 $198,051 – $388,350
35% $388,351 or more $388,351 or more $194,176 or more $388,351 or more

Corporate Tax Rate 35%

2012 Tax Revenue

$2.45 trillion

2013 Obama Tax Bracket

able: 2013 Tax Rates and Brackets
Filing Status Taxable Income Rate
Single $0 to $8,925*: 10%
$8,925* to $36,250: 15%
$36,250 to $87,850: 25%
$87,850 to $183,250: 28%
$183,250 to $398,350: 33%
$398,350 to $400,000: 35%
$400,000+: 39.6%
Joint $0 to $17,850*: 10%
$17,850* to $72,500: 15%
$72,500 to $146,400: 25%
$146,400 to $223,050: 28%
$223,050 to $398,350: 33%
$398,350 to $450,000: 35%
$450,000+: 39.6%
Head of Household $0 to $12,750*: 10%
$12,750* to $48,600: 15%
$48,600 to $125,450: 25%
$125,450 to $203,150: 28%
$203,150 to $398,350: 33%
$398,350 to $425,000: 35%
$425,000+: 39.6%

Corporate Tax Rate 35%

2013 Tax Revenue

$2.77 trillion.

2014 Obama Tax Bracket

2014 tax brackets (for taxes due April 15, 2015)
Tax rate Single filer Married filing jointly or qualifying widow/widower Married filing separately Head of household
10% Up to $9,075 Up to $18,150 Up to $9,075 Up to $12,950
15% $9,076 to $36,900 $18,151 to $73,800 $9,076 to $36,900 $12,951 to $49,400
25% $36,901 to $89,350 $73,801 to $148,850 $36,901 to $74,425 $49,401 to $127,550
28% $89,351 to $186,350 $148,851 to $226,850 $74,426 to $113,425 $127,551 to $206,600
33% $186,351 to $405,100 $226,851 to $405,100 $113,426 to $202,550 $206,601 to $405,100
35% $405,101 to $406,750 $405,101 to $457,600 $202,551 to $228,800 $405,101 to $432,200
39.6% $406,751 or more $457,601 or more $228,801 or more $432,201 or more

Corporate Tax Rate 35%

2014 Tax Revenue

$3.02 trillion.

2015 Obama Tax Bracket

Rate Single Filers Married Joint Filers Head of Household Filers
10% $0 to $9,225 $0 to $18,450 $0 to $13,150
15% $9,225 to $37,450 $18,450 to $74,900 $13,150 to $50,200
25% $37,450 to $90,750 $74,900 to $151,200 $50,200 to $129,600
28% $90,750 to $189,300 $151,200 to $230,450 $129,600 to $209,850
33% $189,300 to $411,500 $230,450 to $411,500 $209,850 to $411,500
35% $411,500 to $413,200 $411,500 to $464,850 $411,500 to $439,000
39.6% $413,200+ $464,850+ $439,000+

Corporate Tax Rate 35%

2015 Tax Revenue

$3.25 trillion.

2016 Obama Tax Bracket

Tax Rate Single Married Filing Jointly Married Filing Separately Head of Household
10% $0 to $9,275 $0 to $18,550 $0 to $9,275 $0 to $13,250
15% $9,276 to $37,650 $18,551 to $75,300 $9,276 to $37,650 $13,251 to $50,400
25% $37,651 to $91,150 $75,301 to $151,900 $37,651 to $75,950 $50,401 to $130,150
28% $91,151 to $190,150 $151,901 to $231,450 $75,951 to $115,725 $130,151 to $210,800
33% $190,151 to $413,350 $231,451 to $413,350 $115,726 to $206,675 $210,801 to $413,350
35% $413,351 to $415,050 $413,351 to $466,950 $206,676 to $233,475 $413,351 to $441,000
39.6% $415,051 and above $466,951 and above $233,476 and above $441,001 and above

Corporate Tax Rate 35%

2016 Tax Revenue

$3.27 trillion.

2017 Trump Tax Bracket Before Tax Cuts

Rate Taxable Income Bracket Tax Owed

10%

$0 to $9,325 10% of Taxable Income

15%

$9,325 to $37,950 $932.50 plus 15% of the excess over $9,325

25%

$37,950 to $91,900 $5,226.25 plus 25% of the excess over $37,950

28%

$91,900 to $191,650 $18,713.75 plus 28% of the excess over $91,900

33%

$191,650 to $416,700 $46,643.75 plus 33% of the excess over $191,650

35%

$416,700 to $418,400 $120,910.25 plus 35% of the excess over $416,700

39.60%

$418,400+ $121,505.25 plus 39.6% of the excess over $418,400

Corporate Tax Rate 35%

2017 Tax Revenue

$3.32 trillion.

2018 Trump Tax Bracket With Tax Cuts

Rate For Unmarried Individuals, Taxable Income Over For Married Individuals Filing Joint Returns, Taxable Income Over For Heads of Households, Taxable Income Over
10% $0 $0 $0
12% $9,525 $19,050 $13,600
22% $38,700 $77,400 $51,800
24% $82,500 $165,000 $82,500
32% $157,500 $315,000 $157,500
35% $200,000 $400,000 $200,000
37% $500,000 $600,000 $500,000

Corporate Tax Rate 21%

2018 Tax Revenue

$3.34 trillion, Projected.

Analysis:

We have seen a steady incline in Federal Revenue every year under Obama and Trump’s first year before his Tax cuts. According to the left 2018 should be a loss in Federal Revenue with the Tax cuts being passed. The official numbers are not in because we are not finished with the year, but they have projected the Federal Revenue to increase up to $3.34 Trillion. This would be the highest Federal Revenue ever reported in the United States History. The Projections for 2019-2020 are predicted to shatter this record and increase in rates we haven’t seen in a long time.

The numbers go to show that cutting taxes on Corporations and everyone else has increased our Tax Revenue and created more jobs with more money in everyone’s [ockets. For the Left to deny these facts are of delusion and Zeal. Trump cut Cooperate Taxes by 14%, which was a true stimulator to our economy, and we could improve our economy by cutting the corporate rate to 15%. This would likely increase Federal Revenue to levels that could keep us out of debt.

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