Posted on 03/14/2018 4:35:49 AM PDT by IBD editorial writer
Tax Cuts: The latest monthly Treasury report on taxes and spending shows that gross tax receipts in February were $1.4 billion higher than the year before. Weren't the Republican tax cuts supposed to explode the deficit?
X According to the report, the government took in $238.2 billion in taxes in February. The year before, tax revenues were $236.8 billion.
For fiscal year 2018, which started last October, taxes are up $50.5 billion compared with the same months last year, and are at a record high level for this five-month span.
The report does show that net receipts were lower in February compared with last year, but the main reason is that individual income tax refunds jumped $13.3 billion, while corporate tax refunds went up $4 billion, neither of which is the result of the tax cuts that took effect in January.
Even so, net receipts are up by $29.6 billion for the current fiscal year — a 2.4% increase — compared with the same period last year. That's also a record high.
(Excerpt) Read more at investors.com ...
Trickle down ?
It’s all about the Laffer Curve.
Laffer Curve.
The hand of the Gipper.
I thought this was the story.
https://www.investopedia.com/terms/l/laffercurve.asp
The first presentation of the Laffer Curve was performed on a paper napkin back in 1974, when its author was speaking with senior staff members of President Gerald Ford’s administration about the state of economic malaise that had engulfed the country. At the time, most economists were espousing a Keynesian approach to solving the problem, which advocated more government spending to stimulate demand for products. Laffer countered that the problem isn’t too little demand. Rather, it was the burden of heavy taxes and regulations that created impediments to production, which impacts government revenue.
The theory later became a cornerstone of President Ronald Reagan’s economic policy, which resulted in one of the biggest tax cuts in history. During his time in office, tax revenues received by the government increased from $517 billion in 1980 to $909 billion in 1988.
OK ... now make some drastic cuts in the size, scope, power, and COST of government ... and maybe we can quit running up unpayable debt.
LOL, two posts in to nail it! We must be slipping, it didn’t get posted on the first post!
See, this is one of those things that Leftists REFUSE to accept,
They cannot understand, no matter how many times it is explained, and no matter how many times it is actually demonstrated with real life examples, that increasing taxes can drive down tax revenues.
They look at it in the same disbelieving light that they look at the fact that increasing gun ownership results in less crime.
It is the same way with “The Invisible Hand” of a free economy and the way goods and services are efficiently delivered, and prices set. They don’t understand how millions of people voting with their hard earned money is more efficient than a room with 10 ‘smart’ leftists who make all those decisions. They don’t understand it or trust it, so they reject it, even as the concept fills their coffers and gas tanks.
Inside their little pea-brains, they cannot reconcile these things, so they reject them.
That is the corollary. The main theory is decreasing taxes drives up tax revenues...
Ha!
You summed it up nicely!
I remember Obama saying he believed in the ‘Invisible Hand’ guided by government.
And some people don’t think he was a socialist. Harrumph!
No, because the monthly deficit for February was the highest recorded as well. Link
Tax cuts without spending cuts are a road to disaster.
Well, I can say one thing for certain about Leftists...they are one group of people that make me feel wise in comparison to them!
Not a ONE rejecting the premise: There is no *COST* to tax-cuts.
Laffer curve, Trickle Down, etc....all well and good but, DAMN, nip that crap in the bud FRiends.
The Rights needs to get into the habit (again??) of being able to explain, in a few sentences, a topic. IE: “You can keep more of YOUR own $$\property. It does not belong to GOVT”. Even ‘Trickle Down’ has bad connotations (not inherently ‘mine’, but a gift from ‘higher’).
/rant off
Hah! I never heard that! OMG!
I have been waiting for a new tagline...:) Thank you for the inspiration!
Although the CBO stayed stuck in static analysis, Steve Mnuchin said dynamic analysis was done. I believe he said if GDP stays 2.4% or above, the tax cuts pay for themselves. Dynamic scoring yay!
Supply Side Economics always works, and Paul Krugman is deeply saddened.
People on both sides are afflicted with that ailment.
I miss the Gip.
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