Trump & Friedman Got Tax Cut Right, Tax Biden Plan

The WSJ’s “Boom Times in the Beltway” doesn’t exactly say record federal tax revenues are due to the Trump tax cuts or concede Prof. Milton Friedman’s Chicago School of Economics was right about lowered taxes generating more fed revenue. But, it could have.

Instead, the editors asked this obvious Q: “Federal revenue hits a record $4 trillion. Who needs a tax increase” as President Biden & his socialist cabal are demanding? “Washington has had an excellent pandemic. If you doubt it, look no further than the Congressional Budget Office’s summary for revenues & outlays for fiscal 2021… The federal government has never had it so good – literally.”

Ironically, the lion’s share of those new revenues came from Mr. Biden’s key tax targets (which should but doesn’t include himself), i.e., the “rich” corporations & millionaires (like Nancy Pelosi) who “don’t pay their fair share.” Meanwhile, inflation is running wild & material shortages are popping up everywhere, while the progressive-socialist-controlled Congress wants to spend over $5T more than the $5T or more it already spent over the last 12 months. Concluded the WSJ: “All of this raises the question: With tax revenues coming in like a gusher & the economy slowing from supply-side shortages, why raise taxes at all … [since] there’s no economic logic to it.” The likely answer by the editors was “simply to punish Americans who make more than what Mr. Biden thinks is ‘fair’.” Another interpretation: Trump & Friedman got the unraveling of the economic Gordian Knot right, while Biden is re-tying it.

Davd Soul