TAX CUTS DO NOT PAY FOR THEMSELVES

It's a historical fact that borrowing money to fund huge tax cuts, military buildups, and wars has drastically increased the National Debt and exacerbated the Income Tax Inequality since Reagan took office in 1981! Many fact-check links to government documents, including page numbers, are provided to show that the numbers presented here are real!

GOP RECORD ON TAX CUTS AND THE ECONOMY

President Bush inherited a $236 BILLION SURPLUS from President Clinton and then eight years later on January 20th, 2009 handed President Obama the worst recession since the Great Depression and a Congressional Budget Office projected $1.2 TRILLION DEFICIT (-8.5% GDP) for Fiscal Year 2009 in this January 2009 report page 15 that came out before the inauguration. This was the largest increase in deficit since World War II and much worse than the 1934 deficit of -5.9% GDP at the height of the Great Depression.

Under Bush, Republicans borrowed money to fund large tax cuts while the country was fighting two costly wars, running up huge National Debt. After six years of almost total Republican control of the Federal Government from January 2001 to January 2007, the U.S. ended up with an economic disaster, soaring debts, and millions of job losses. The sad truth is every single penny of the so-called "Tax Cuts" since Reagan took office in 1981 has been "Borrowed Debt" for the future generations to pay back.

U.S. National Debt, Surpluses, Deficits, and Tax Rate Charts 1910 - Present
Sources

Only TWICE in the past 100 years have the Republicans had control of the White House, the Senate, and the House at the same time for MORE THAN TWO YEARS, resulting in the two worst economic disasters during this period:

The Great Depression 1929-39: The GOP ran all three branches of the Federal Government from January 1921 to January 1931, cutting the Top Income Tax rate to 25% and the Corporate and Capital Gains rates to around 12%. With banking regulations practically nonexistent, the Great Depression started 9 years later in 1929. After the Great Crash of 1929, the Republicans under Hoover did little to rescue the economy, allowing a deep recession to snowball into the Great Depression.

The Great Recession 2007-present: The GOP once again ran the Federal Government for MORE THAN TWO YEARS from January 2001 to January 2007, borrowing money to lower the Top Income and Corporate Tax rates to 35% and cutting the Capital Gains rate to 15.7%. With most of the banking regulations put in place since the Great Depression systematically removed, the worst recession since the Great Depression started in 2007.

The two worst economic disasters in the past 100 years happened when taxes and banking regulations were at or near the lowest levels, yet Trump and the Republicans are still pursuing the same economic policies, borrowing money to fund more tax cuts and to reduce the banking regulations put in place since Bush left office - the banking regulations aim to prevent another financial disaster.


WAKE UP PEOPLE!

Think about it. What kind of FAMILY VALUE is it, voting for TAX CUTS 100% borrowed and then force your own children to pay back the debt + interests? What kind of RELIGIOUS VALUE is it, reducing aids to the poor to fund tax cuts to the Super-Rich?

TAX CUTS sound great, but not if they are borrowed debts. WAKE UP PEOPLE!

Actions and records speak louder than political spins and partisan attacks so FACT CHECK, STAY INFORMED, and VOTE SMART!


U.S. Government figures in millions of dollars:

Sources WH Tables   WH Tables   WH Tables IRS IRS IRS        
Year Surplus/Deficit % of GDP National Debt % of GDP GDP Income Corporate Capital Gains President S H Major Economic Events
2020 est. -986,949 est. -4.5% est. 23,900,930 est. 108.3% est. 22,068,800       Trump R D  
2019 est. -984,395 est. -4.7% est. 22,702,807 est. 108.1% est. 21,003,100       R R D  
2018 est. -832,632 est. -4.2% est. 21,478,237 est. 107.2% est. 20,029,300 37% 21% 20% R R R  
2017 -665,372 -3.5% 20,205,705 105.4% 19,177,200 39.6% 35% 20% R R R  
2016 -584,651 -3.2% 19,539,450 105.8% 18,469,900 39.6% 35% 20% Obama R R  
2015 -438,496 -2.4% 18,120,106 100.8% 17,982,900 39.6% 35% 20% D R R  
2014 -484,600 -2.8% 17,794,483 103.2% 17,243,600 39.6% 35% 20% D D R  
2013 -679,542 -4.1% 16,719,434 101.2% 16,515,900 39.6% 35% 20% D D R  
2012 -1,086,955 -6.8% 16,050,921 100.1% 16,027,200 35% 35% 15% D D R  
2011 -1,299,599 -8.5% 14,764,222 96.0% 15,379,200 35% 35% 15% D D R End of Iraq War
2010 -1,294,373 -8.7% 13,528,807 91.4% 14,798,500 35% 35% 15% D D D  
2009 -1,412,688 -9.8% 11,875,851 82.4% ** 14,414,600 35% 35% 15% D D D End of Great Recession
2008 -458,553 -3.19% 10,024,724 69.64% 14,394,100 35% 35% 15.4% Bush D D Start of Global Financial Crisis
2007 -160,701 -1.16% 9,007,653 64.84% 13,891,800 35% 35% 15.7% R D D Start of Great Recession
2006 -248,181 -1.88% 8,506,973 64.33% 13,224,900 35% 35% 15.7% R R R  
2005 -318,346 -2.56% 7,932,709 63.74% 12,445,700 35% 35% 16.1% R R R  
2004 -412,727 -3.53% 7,379,052 63.15% 11,685,600 35% 35% 16.1% R R R  
2003 -377,585 -3.44% 6,783,231 61.78% 10,979,800 35% 35% 16.1% R R R Start of Iraq War
2002 -157,758 -1.50% 6,228,235 59.07% 10,543,900 38.6% 35% 21.2% R D R Start of Afghan War
2001 128,236 1.25% 5,807,463 56.80% * 10,225,300 39.1% 35% 21.2% R B R 911. Contraction
2000 236,241 2.43% 5,674,178 58.44% 9,709,800 39.6% 35% 21.2% Clinton R R  
1999 125,610 1.38% 5,656,270 61.98% 9,125,300 39.6% 35% 21.2% D R R  
1998 69,270 0.80% 5,526,193 64.05% 8,627,900 39.6% 35% 21.2% D R R  
1997 -21,884 -0.27% 5,413,146 66.16% 8,182,400 39.6% 35% 21.2% D R R  
1996 -107,431 -1.40% 5,224,810 67.91% 7,694,100 39.6% 35% 29.2% D R R  
1995 -163,952 -2.24% 4,973,982 67.90% 7,325,800 39.6% 35% 29.2% D R R  
1994 -203,186 -2.92% 4,692,749 67.41% 6,961,300 39.6% 35% 29.2% D D D  
1993 -255,051 -3.88% 4,411,488 67.09% 6,575,500 39.6% 35% 29.2% D D D  
1992 -290,321 -4.65% 4,064,620 65.14% 6,239,900 31% 34% 28.9% Bush D D  
1991 -269,238 -4.54% 3,665,303 61.76% 5,935,100 31% 34% 28.9% R D D Gulf War. Recession
1990 -221,036 -3.85% 3,233,313 56.37% 5,735,400 28% 34% 28% R D D  
1989 -152,639 -2.83% 2,857,430 52.91% 5,400,500 28% 34% 28% R D D  
1988 -155,178 -3.10% 2,602,337 51.96% 5,008,600 28% 34% 28% Reagan D D  
1987 -149,730 -3.22% 2,350,276 50.58% 4,647,100 38.5 40% 28% R D D  
1986 -221,227 -5.01% 2,125,302 48.17% 4,412,400 50% 46% 20% R R D  
1985 -212,308 -5.13% 1,823,103 44.02% 4,141,500 50% 46% 20% R R D  
1984 -185,367 -4.83% 1,572,266 40.94% 3,840,200 50% 46% 20% R R D  
1983 -207,802 -6.04% 1,377,210 40.03% 3,440,700 50% 46% 20% R R D  
1982 -127,977 -3.97% 1,142,034 35.38% 3,227,600 50% 46% 20% R R D End of Recession
1981 -78,968 -2.59% 997,855 32.67% 3,054,700 70% 46% 23.7% R R D  
1980 -73,830 -2.71% 907,701 33.29% 2,726,700 70% 46% 28% Carter D D Start of Recession
1979 -40,726 -1.63% 826,519 33.05% 2,500,700 70% 46% 28% D D D  
1978 -59,185 -2.67% 771,544 34.80% 2,217,000 70% 48% 39% D D D  
1977 -53,659 -2.72% 698,840 35.40% 1,974,300 70% 48% 39.9% D D D  
1976 -73,732 -4.25% 620,433 35.73% 1,736,500 70% 48% 39.9% Ford D D  
1975 -53,242 -3.41% 533,189 34.16% 1,560,700 70% 48% 36.5% R D D End of Vietnam War. End of Oil Crisis
1974 -6,135 -0.43% 475,059 33.01% 1,439,300 70% 48% 36.5% Nixon D D  
1973 -14,908 -1.14% 458,141 35.04% 1,307,600 70% 48% 36.5% R D D Start of Oil Crisis
1972 -23,373 -1.98% 427,260 36.26% 1,178,300 70% 48% 36.5% R D D  
1971 -23,033 -2.13% 398,129 36.87% 1,079,900 70% 48% 34.2% R D D  
1970 -2,842 -0.28% 370,918 36.64% 1,012,200 70% 49.2% 32.2% R D D  
1969 3,242 0.34% 353,720 37.29% 948,600 70% 52.8% 27.5% R D D  
1968 -25,161 -2.90% 347,578 40.11% 866,600 70% 52.8% 26.9% Johnson D D  
1967 -8,643 -1.06% 362,220 44.62% 811,800 70% 48% 25% D D D  
1966 -3,698 -0.49% 319,907 42.49% 752,900 70% 48% 25% D D D  
1965 -1,411 -0.21% 317,273 46.18% 687,100 70% 48% 25% D D D Major US Deployment in Vietnam
1964 -5,915 -0.92% 311,712 48.67% 640,400 77% 50% 25% D D D  
1963 -4,756 -0.79% 305,859 51.09% 598,700 91% 52% 25% Kennedy D D  
1962 -7,146 -1.26% 298,200 52.54% 567,600 91% 52% 25% D D D  
1961 -3,335 -0.63% 288,970 54.44% 530,800 91% 52% 25% D D D  
1960 301 0.06% 286,330 55.29% 517,900 91% 52% 25% Eisenhower D D Start of Vietnam Involvement. Recession
1959 -12,849 -2.61% 284,705 57.93% 491,500 91% 52% 25% R D D  
1958 -2,769 -0.60% 276,343 60.01% 460,500 91% 52% 25% R D D  
1957 3,412 0.76% 270,527 60.08% 450,300 91% 52% 25% R D D Recession
1956 3,947 0.92% 272,750 63.85% 427,200 91% 52% 25% R D D  
1955 -2,993 -0.76% 274,374 69.53% 394,600 91% 52% 25% R D D  
1954 -1,154 -0.31% 271,259 71.89% 377,300 91% 52% 25% R R R  
1953 -6,493 -1.74% 266,071 71.35% 372,900 92% 52% 25% R R R End of Korean War. Recession
1952 -1,519 -0.44% 259,105 74.33% 348,600 92% 52% 25% Truman D D  
1951 6,102 1.90% 255,221 79.61% 320,600 91% 50.75% 25% D D D  
1950 -3,119 -1.14% 257,357 94.27% 273,000 91% 42% 25% D D D Start of Korean War
1949 580 0.21% 252,770 93.24% 271,100 91% 38% 25% D D D  
1948 11,796 4.61% 252,292 98.55% 256,000 91% 38% 25% D R R  
1947 4,018 1.72% 258,286 110.76% 233,200 91% 38% 25% D R R  
1946 -15,936 -7.16% 269,442 120.99% 222,700 91% 38% 25% D D D  
1945 47,553 21.48% 258,682 116.84% 221,400 94% 40% 25% F.D.Roosevelt D D End of World War II
1944 -47,557 -22.73% 201,003 96.08% 209,200 94% 40% 25% D D D  
1943 -54,554 -30.26% 136,696 75.82% 180,300 88% 40% 25% D D D  
1942 -20,503 -14.21% 72,422 50.19% 144,300 88% 40% 25% D D D  
1941 -4,941 -4.33% 48,961 42.91% 114,100 81% 31% 30% D D D Pearl Harbor
1940 -2,920 -3.02% 42,967 44.39% 96,800 79% 24% 30% D D D  
1939 -2,846 -3.19% 40,439 45.39% 89,100 79% 19% 30% D D D Start of WW II. End of Great Depression
1938 -89 -0.10% 37,164 41.76% 89,000 79% 19% 30% D D D  
1937 -2,193 -2.50% 36,424 41.49% 87,800 79% 15% 39% D D D  
1936 -4,304 -5.48% 33,778 43.03% 78,500 79% 15% 39% D D D  
1935 -2,803 -4.03% 28,700 41.24% 69,600 63% 13.75% 31.5% D D D  
1934 -3,586 -5.86% 27,053 44.20% 61,200 63% 13.75% 31.5% D D D  
1933 -2,602 -4.52% 22,538 39.13% 57,600 63% 13.75% 12.5% D D D  
1932 -2,735 -4.05% 19,487 28.83% 67,600 63% 13.75% 12.5% Hoover R D  
1931 -462 -0.55% 16,801 20.05% 83,800 25% 12% 12.5% R R D  
1930 738 0.76% 16,185 16.62% 97,400 25% 12% 12.5% R R R  
1929 734 0.71% 16,931 16.34% 103,600 25% 11% 12.5% R R R Start of Great Depression
1928 939 0.96% 17,604 18.07% 97,400 25% 12% 12.5% Coolidge R R  
1927 1,155 1.21% 18,511 19.38% 95,500 25% 13.5% 12.5% R R R  
1926 865 0.89% 19,643 20.27% 96,900 25% 13.5% 12.5% R R R  
1925 717 0.79% 20,516 22.64% 90,600 25% 13% 12.5% R R R  
1924 963 1.11% 21,250 24.45% 86,900 46% 12.5% 12.5% R R R  
1923 713 0.83% 22,349 26.17% 85,400 50% 12.5% 12.5% Harding R R  
1922 736 1.00% 22,963 31.28% 73,400 58% 12.5% 12.5% R R R  
1921 509 0.69% 23,977 32.58% 73,600 73% 10% 73% R R R End of Recession
1920 291 0.33% 25,952 29.36% 88,400 73% 10% 73% Wilson R R  
1919 -13,363 -17.07% 27,390 34.98% 78,300 73% 10% 73% D R R  
1918 -9,032 -11.92% 14,592 19.25% 75,800 77% 12% 77% D D R End of World War I. Start of Recession
1917 -853 -1.43% 5,717 9.58% 59,700 67% 6% 67% D D R  
1916 48 0.10% 3,609 7.28% 49,600 15% 2% 15% D D D  
1915 -63 -0.16% 3,058 7.90% 38,700 7% 1%   D D D  
1914 -1 0.00% 2,912 7.98% 36,500 7% 1%   D D D Start of World War I
1913 -1 0.00% 2,916 7.46% 39,100 7% 1%   D D D  
1912 3 0.01% 2,868 7.67% 37,400       Taft R D  
1911 11 0.03% 2,765 8.06% 34,300       R R D  
1910 -18 -0.05% 2,652 7.94% 33,400       R R R  
1909 -89 -0.28% 2,639 8.20% 32,200       R R R  
1908 -57 -0.19% 2,626 8.70% 30,200       T. Roosevelt R R  
1907 87 0.26% 2,457 7.25% 33,900       R R R Contraction
1906 25 0.08% 2,337 7.56% 30,900       R R R  
1905 -23 -0.08% 2,274 7.87% 28,900       R R R  
1904 -43 -0.17% 2,264 8.78% 25,800       R R R  
1903 45 0.17% 2,202 8.47% 26,000       R R R  
1902 77 0.32% 2,158 8.92% 24,200       R R R  
1901 63 0.28% 2,143 9.57% 22,400       McKinley R R  
Year Surplus/Deficit % of GDP National Debt % of GDP GDP Income Corporate Capital Gains President S H Major Economic Events
Sources WH Tables   WH Tables   WH Tables IRS IRS IRS        

Sources:
National Debt until 2008: U.S. Department of the Treasury Historical Debt Tables
Historical numbers prior to FY2001: GDP page 24-25, Surplus/Deficit page 21-22 of the White House document 2009 Historical Tables
* Historical numbers from 2001-2008: GDP page 25, Surplus/Deficit page 22 of the White House document 2012 Historical Tables
** Historical numbers from 2009-2018: GDP page 27, Surplus/Deficit page 31, National Debt page 132 of the White House document 2019 Historical Tables
Historical numbers receive minor updates yearly; however, the tiny changes won't alter the graphs or the big picture in any noticeable way!
 
 

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