Posted on 05/11/2018 9:16:27 AM PDT by SeekAndFind
The federal government collected far more taxes this April than it did a year ago, despite the "budget busting" Trump tax cuts. So, we'll ask again: Are the tax cuts paying for themselves?
According to the latest monthly report from the Congressional Budget Office, revenues in April totaled $515 billion — a 13% increase over last April and an all-time high for the month.
For the current 2018 fiscal year, which started last October, revenues are $83 billion higher than they were the year before — an increase of 4.3%. That's a faster rate of growth than occurred during President Obama's last years in office. (See nearby chart.)
Individual taxes, the CBO report says, are up 11.5% so far this fiscal year, and payroll taxes are up 2.8%. Both are signs of a healthy labor market, which is creating more jobs, higher wages and, as a result, more tax revenues. Those gains, the CBO says, more than offset the 22% decline in corporate income taxes.
In other words, in a fiscal year that's seven months old (four of which were after the tax cuts went into effect), federal revenues are higher than ever.
Or, to put it another way, it looks like those of us who predicted the pro-growth tax cuts would at least partially pay for themselves through increased economic growth were correct.
The CBO admitted as much earlier this year, when it sharply increased its forecast for economic growth this year and next, largely because of Trump's tax cuts. That, in turn, will generate $1 trillion more in revenues than expected.
(Excerpt) Read more at investors.com ...
Laffer curve?
Never.
They will never admit that they were wrong. In fact, they will deny ever saying that!
Democrats admit being wrong?
That’s not a thing.
On the day that Satan skates to work.
Laffer is laughing.
5.56mm
No, it’s the “giggle wiggle”
That’s how the democrats and their media shills mocked these predicted results last time... when they were ALSO proven to be correct.
With Dems tax policy isn’t about revenue, it’s about control.
indeed. it’s unfortunate that economic growth increases government revenues. they just use it to get into more trouble.
Quite interesting considering the Withholding Tables were adjusted downward with the new Tax Rates.
Don’t forget that we also had record Tax Revenues during the Bush (43) and Obama Administrations with the Revenue increases in the Bush Administration coming after his Tax Cut Bill was passed.
While it sounds like good news, and very well could be, there could be other explanations for it.
My taxes were 75% higher this year, because I had short term capital gains last year in the market. Nice problem to have, but that is not a direct effect of the labor market. In fact my employer didn’t give raises in the last two years.
Is it just April? There could be a shift.
In other news, both CA and NY limit local and state taxes as a deduction when calculating their own income tax.
“When Will Dems Admit They Were Wrong?”
Never. They’ll claim Obama did it. This what subversives do—lie their a$$es off.
When they admit that Paul Krugman has no clue about how economics work in the real world and that their entire philosophy is out of kelter with reality.
You can’t say this. April is the biggest month for people paying 2017 taxes. So while there are people and companies paying some first quarter taxes through withholdings and estimated taxes, the reality is most of this revenue comes from the old tax system. Wait until first quarter next year to see what the haul is.
The large revenue this month is more of a GDP factor. Trump has juiced the economy in several ways, not just taxes. And its the culmination of economy boosting, capital boosting policies which include the tax cut, that is producing the increased tax revenue.
The U.S. government's total revenue is estimated to be $3.422 trillion for fiscal year 2019. That's the most recent forecast from the Office of Management and Budget for October 1, 2018 through September 30, 2019.
Where does the federal government's revenue come from? Individual taxpayers like you provide most of of it. Income taxes contribute $1.688 trillion, half of the total. Another third ($1.238 trillion) comes from your payroll taxes.
This includes $905 billion for Social Security, $275 billion for Medicare and $47 billion for unemployment insurance.
Corporate taxes add $225 billion, only 7 percent. Trump's tax plan cut taxes for corporations much more than it did for individuals. In 2017, corporations paid 9 percent and income taxpayers paid 48 percent.
The an out of control progressive is all about control. For one thing, it kills upward mobility. Taxes are too high on the Middle Class and even worse the more you make. It makes it harder to live, to save and to accumulate capital. So, rich liberals on top don’t have to worry too much about being challenged. They don’t have to worry about new products and innovations constantly challenging their hold on industries. That’s on the private side.
On the political side, they can watch the economy tank as they cause it, watch the misery index rise and then blame it on capitalists and conservatives. They do this to cement their hold on the government. They can use the power of regulation control or eliminate rival corporations or industies to make money in the private sector.
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