Fact Check: Higher Corporate Tax Revenue After GOP Tax Reform Debunks Another Democrat Myth

[hislegacy]

From the House Ways and Means Committee:

From April of 2022 - still relevant

KEY POINTS:

Corporate tax revenue is shattering records under Republican tax reform.

• Corporate tax revenue is coming in 22 percent higher than last year’s record level, according to the CBO’s most recent monthly budget review.
• Corporate tax revenue is set to hit a new record of $454 billion. CBO had predicted in June 2017 that corporate tax revenue would only hit $389 billion in 2022.
• As a share of GDP, corporate tax revenue is on track to reach its highest level since 2015 (1.9 percent of GDP).

Overall tax revenue is also strong, including individual, payroll, and other taxes.

• Individual income tax receipts reached an all-time high of $2.04 trillion in FY2021. Receipts are already coming in 36 percent higher in FY2022.
• Total federal tax collections, including payroll and other taxes, are on track to reach $5.04 trillion in FY22, or 21.0 percent of GDP. This would be a new all-time high in both cases.

 

[hislegacy]

From the article in the OP:

• Democrats’ tax plan makes inflation worse when it is already 276 percent higher than predicted by Biden’s budget last year because of higher spending. But higher taxes will also result in higher prices for consumers. American families paid a $5,000 inflation tax in 2021 and view Washington spending as a big part of the problem.
• Biden’s international tax increases make it better to be a foreign company or worker. American companies will pay a global minimum tax rate higher than the 15 percent rate the Biden Administration will allow for other countries. This economic surrender will make Americans less competitive and will drive manufacturing, research, and investment overseas. Worse, America will be less competitive with a higher tax rate than Communist China, sending jobs fleeing overseas.

 

[hislegacy]

It is still relevant because there are politicians on the left still saying that the Republicans tax cuts cost us billions when it did not.

 

[iluvatar5150]

From the House Ways and Means Committee:

From April of 2022 - still relevant

KEY POINTS:

Corporate tax revenue is shattering records under Republican tax reform.

• Corporate tax revenue is coming in 22 percent higher than last year’s record level, according to the CBO’s most recent monthly budget review.
• Corporate tax revenue is set to hit a new record of $454 billion. CBO had predicted in June 2017 that corporate tax revenue would only hit $389 billion in 2022.
• As a share of GDP, corporate tax revenue is on track to reach its highest level since 2015 (1.9 percent of GDP).

Overall tax revenue is also strong, including individual, payroll, and other taxes.

• Individual income tax receipts reached an all-time high of $2.04 trillion in FY2021. Receipts are already coming in 36 percent higher in FY2022.
• Total federal tax collections, including payroll and other taxes, are on track to reach $5.04 trillion in FY22, or 21.0 percent of GDP. This would be a new all-time high in both cases.

Your data is from 2022. In the other thread, we were talking about how revenues this year are falling short. You might not wanna count your chickens yet.

But also, Biden was also president in 2022. Now I'm confused as to whether he was good for the economy or bad.

 

[RocksInMyHead]

The question is whether corporate tax revenues are shattering records because of Republican tax reforms or in spite of those reforms? By definition, tax revenues represent a percentage of profits, so if profits are shattering records (and they are), then one would expect tax revenues to shatter records as well.

 

[hislegacy]

Your data is from 2022. In the other thread, we were talking about how revenues this year are falling short. You might not wanna count your chickens yet.

But also, Biden was also president in 2022. Now I'm confused as to whether he was good for the economy or bad.

This only has to do with this thread - if I wanted it to do with another thread, I would have posted it there - it is called staying on topic - this is a different thread because it is a different topic - thanks for checking

 

[hislegacy]

Corporate tax revenue is shattering records under Republican tax reform.

But also, Biden was also president in 2022. Now I'm confused as to whether he was good for the economy or bad.

I hope repeating the topic and highlighting the important part of the topic help your understanding?

 

[hislegacy]

From April of 2022 - still relevant

Your data is from 2022.

Thank you for restating what I started the OP with.

 

[JustOneWay]

Nothing but partisan mud-slinging from the republican controlled Ways and Means Committee.

There is nothing here to discuss.

I wish the republicans running this would actually do work for America instead of republican America.

Examples from their own website.

Reform Debunks Another Democrat Myth​

Smith: Biden’s Economy Continues to Stumble Along​

Fact Sheet: Democrats’ Drug Price-Setting Scheme Dismantles Medicare’s Promise, Undermines Seniors’ Health​

Chairman Smith: Biden Bankrupting Families While Bankrupting America​

Smith: Biden’s Reckless Spending, Brinksmanship Pushes America’s Credit Off the Ledge​

Republicans Launch Inquiry into Sweetheart Hunter Biden Plea Deal​

Judge’s Refusal to Accept Hunter Biden Plea Deal is a Win for the Integrity of America’s Justice System​

Chairman Smith: Ways and Means Republicans Helping Small Businesses Hammered by Biden Policies​

Speaker McCarthy’s Fox News Op-Ed: It Smells Like a Cover-Up at Biden’s DOJ​

and on and on....

 

[essentialsaltes]

2020 - pandemic
April 2021 - lousy tax receipts
2021 - economic resurgence
April 2022 - great tax receipts

 

[iluvatar5150]

This only has to do with this thread - if I wanted it to do with another thread, I would have posted it there - it is called staying on topic - this is a different thread because it is a different topic - thanks for checking

Your thread is about tax revenues and who gets credit/blame. My comments were about tax revenues and who gets credit/blame.

It is entirely relevant, in a thread about tax revenues, to bring up outside sources, like one that you provided in another thread, to point out how the data in this OP is outdated. You may claim that it is still relevant, but that goes against other data of which we've already discussed.

It is entirely relevant, in a thread in which you assign credit for a specific phenomenon to question that assignment with contradictory information and contradictory claims you have made elsewhere. After all - we were under "Bidenomics" last year when we had high revenues and a low deficit; and we're still under "Republican tax reform" this year with low revenues and a high deficit. Who's to blame? idk - my guess is it's a team effort.

The rules about keeping posts on-topic are there for the purpose of keeping discussions on track, not so staff members can make arbitrary distinctions that, conveniently, deflect questions that undermine their preferred propaganda.

 

[Gene2memE]

One swallow does not a summer make...

https://www.finance.senate.gov/imo/media/doc/Corporate%20tax%20receipts%204.13.21.pdf

1. From 2000 to 2016, corporate tax receipts averaged about 1.7 percent of total GDP (the “modern average”)
2. Immediately after the tax bill, corporate revenues dropped nearly 40 percent below this modern average
3. Corporate tax revenues will be more than 25 percent less then the modern average over the next decade.

Federal Government: Tax Receipts on Corporate Income

Graph and download economic data for Federal Government: Tax Receipts on Corporate Income (FCTAX) from 1929 to 2022 about receipts, tax, federal, corporate, government, income, GDP, and USA.

fred.stlouisfed.org

National income: Corporate profits before tax (without IVA and CCAdj)

Graph and download economic data for National income: Corporate profits before tax (without IVA and CCAdj) (A053RC1Q027SBEA) from Q1 1947 to Q2 2023 about national income, IVA, CCADJ, corporate profits, tax, corporate, income, GDP, and USA.

fred.stlouisfed.org

Corporate Profits After Tax (without IVA and CCAdj)

Graph and download economic data for Corporate Profits After Tax (without IVA and CCAdj) (CP) from Q1 1947 to Q2 2023 about IVA, CCADJ, corporate profits, tax, corporate, GDP, and USA.

fred.stlouisfed.org

Six Charts That Show How Low Corporate Tax Revenues Are in the United States Right Now

Compared to historical trends and other advanced economies, corporate tax revenues in the United States are low.

www.pgpf.org