Lesh
Diamond Member
- Dec 21, 2016
- 69,914
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The tax cuts have NOT paid for themselves. In fact revenue growth is lower than it would be had we NOT cut taxes (primarily on the wealthy and corporations)
As far as record revenue...unless we have NEGATIVE revenue (also known as a recession) by definition we ALWAYS have "record increases" because GDP is always growing . MOre economic activity (even if it's minimal) means more revenue (records...even if only a $1 increase)
The NY Times describes it well here
One way to think about it is from the perspective of a small-business owner. Let’s say you run your own bakery. You sell bread for $4 a loaf. Today, you sold 90 loaves, for $360 in revenue. You expect that, because it’s a busier day at the bakery tomorrow, you’ll sell 100 loaves then, earning $400. But you’d like to sell even more than that, so you lower the price to $3 a loaf to encourage additional purchases.
Congratulations! You sell 125 loaves. Your revenue goes up, to $375. That’s more than you brought in the day before. Your price cut, though, has not “paid for itself” — because you ended up bringing in less revenue than you would have otherwise.
In other words, you brought in more money than the day before. But it’s less than you would have made if you hadn’t cut the price.
No, Trump’s Tax Cut Isn’t Paying for Itself (at Least Not Yet)
As far as record revenue...unless we have NEGATIVE revenue (also known as a recession) by definition we ALWAYS have "record increases" because GDP is always growing . MOre economic activity (even if it's minimal) means more revenue (records...even if only a $1 increase)
The NY Times describes it well here
One way to think about it is from the perspective of a small-business owner. Let’s say you run your own bakery. You sell bread for $4 a loaf. Today, you sold 90 loaves, for $360 in revenue. You expect that, because it’s a busier day at the bakery tomorrow, you’ll sell 100 loaves then, earning $400. But you’d like to sell even more than that, so you lower the price to $3 a loaf to encourage additional purchases.
Congratulations! You sell 125 loaves. Your revenue goes up, to $375. That’s more than you brought in the day before. Your price cut, though, has not “paid for itself” — because you ended up bringing in less revenue than you would have otherwise.
In other words, you brought in more money than the day before. But it’s less than you would have made if you hadn’t cut the price.
No, Trump’s Tax Cut Isn’t Paying for Itself (at Least Not Yet)
