Democrats are using a recent Congressional Budget Office report to argue against extending the 2017 tax cuts that boosted the economy. Former Vice President Mike Pence is urging Congressional Republicans to push back, stating that letting the tax cuts expire would be harmful to the American people.
The 2017 tax cuts led to income growth for Americans, created new jobs, and brought billions of dollars back to the US. These claims are supported by the fact that individual income tax rates were lowered, family tax credits increased, and corporate tax rates flattened. The tax code was also simplified, and loopholes were eliminated.
However, most of these cuts are set to expire in 2025. If not renewed, working Americans will face higher taxes, and businesses may have to raise prices, cut jobs, or both. Despite the benefits of the tax cuts, Democrats are promoting a CBO report that suggests renewing the cuts would cost the Treasury $4.6 trillion over the next decade.
It is important to note that the CBO has a history of underestimating the impact of economic growth from tax cuts and economic slowdowns from tax hikes. Revenues actually increased after the 2017 tax cuts were implemented, debunking the CBO’s projections.
The tax cuts have had a positive impact on household incomes and employment, while federal revenues have exceeded expectations. If lawmakers are concerned about deficits, they should focus on reducing spending rather than letting pro-growth tax cuts expire.
Overall, the 2017 tax cuts have been beneficial and should be extended. Congress should prioritize stopping excessive government spending rather than abandoning policies that have helped the economy.
