It’s official: Trump’s tax cuts paid for themselves

How many times have you heard President Joe Biden or Sens. Elizabeth Warren (D-MA) and Bernie Sanders (I-VT) berate the Trump tax cuts as “a giveaway to the rich?”

Biden and congressional Democrats now want to let expire major planks of the Tax Cuts and Jobs Act of 2017, former President Donald Trump's signature domestic achievement,

particularly the incentives for American businesses to invest more here at home. We now have incontrovertible evidence that after five years since they took effect, the

Trump tax rate cuts of 2017 raised revenues over this time period. For full disclosure, I should note that I worked with fellow economists Larry Kudlow, Arthur Laffer, and Kevin

Hassett together on that plan, which went into effect on Jan. 1, 2018. The latest Congressional Budget Office report released earlier this month calculated that the

federal government collected $4.9 trillion of federal revenue last year. This was up — ready for this? — almost $1.5 trillion since 2017, the year before the tax cuts became law.

In other words, revenues were up 40% in five years. The evidence through the first three years of the tax cut finds that the share of taxes paid by the wealthiest 1% rose

as well. So much for this being a tax giveaway for the rich. I compared these numbers with the estimates of what the Trump tax cuts were expected to “cost.” Instead of an

expected $1 trillion revenue “loss,” the tax receipts over this period were almost precisely what they would have been if we didn’t cut taxes at all. And remember, that estimate

in 2017 never anticipated the two-year hit to the economy from COVID-19 lockdowns — which depleted the Treasury.