AI overview

The Trump tax cut in 2017 lowered the corporation rate from 35% to 21%. At that time the average corporate tax rates around the world were 25% so this made America more competitive. The result was that corporate tax revenue increase from $297 billion to $530 while overall revenues increased from $3.3 trillion to $5.1 trillion. This is a 7% increase while inflation during this time was 3.5%. When I google I get something called AI overview I asked, does government spending increase tax revenues and here is the answer Yes, government spending can increase tax revenues I asked, does private spending increase tax revenues and here is the answer Yes, private spending leads to increased tax revenues I asked, does lowering tax rates increase tax revenues and here is the answer No, cutting taxes reduces government tax revenues.