Both Republicans and Democrats have been prone to sharing misinformation and perpetuating myths regarding the Trump Administration. It can be hard to know what, or who, to believe.
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ChatGPT should definitely not be considered a reputable source on its own. After all, it’s prone to hallucinations and can only surmise conclusions based on information drawn from the internet, which could be biased. However, we thought it would be interesting to ask ChatGPT about the most common myths regarding Trump’s economy. Here’s one myth the Generative AI platform shared — and debunked.
Tax Cuts Pay for Themselves
One pervasive myth that has followed Trump through both his terms as President is that federal tax cuts pay for themselves. The theory, as ChatGPT explained it: “The claim is that by cutting corporate and individual tax rates, economic growth will surge so much that the government will actually collect more revenue than before — offsetting the loss from lower rates.”
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Is It True?
The 2017 Tax Cuts and Jobs Act reduced corporate tax rates from 355% to 21%, leading to a 40% reduction in corporate tax receipts in 2018 compared to 2017, according to a report from the Brookings Institution.
“Growth did tick up slightly in 2018, but it quickly leveled off to the same long-term trend. Government revenue, however, fell,” ChatGPT said.
In 2025, the federal government voted to extend the TCJA and proposed new cuts designed to spark economic growth. But research by the nonpartisan Congressional Budget Office reported by AP News indicates that Trump’s One Big Beautiful Bill would increase the budget deficit by $2.8 trillion over the next decade, and increase interest payments on that debt by $441 billion.
The bottom line, according to ChatGPT: “While tax cuts can modestly stimulate growth, they do not generate enough to offset their cost.”
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: I Asked ChatGPT To Debunk One Common Myth About Trump’s Economy: Here’s What It Said
