Feds Collect Record Taxes in First Month Under Tax Cut; Run Surplus in January

www.cnsnews.com ^ | 02/12/2018 | By Terence P. Jeffrey

[Red Badger]

(CNSNews.com) - The federal government this January ran a surplus while collecting record total tax revenues for that month of the year, according to the Monthly Treasury Statement released today.

January was the first month under the new tax law that President Donald Trump signed in December.

During January, the Treasury collected approximately $361,038,000,000 in total tax revenues and spent a total of approximately $311,802,000,000 to run a surplus of approximately $49,236,000,000.

Despite the monthly surplus of $49,236,000,000, the federal government is still running a deficit of approximately $175,718,000,000 for fiscal year 2018. That is because the government entered the month with a deficit of approximately $224,955,000,000.

[TBP]

But...but...but... that wasn’t supposed to happen! Who allowed this?

[robroys woman]

Laffer curve in action.

[WayneS]

No, no, no. This article is wrong, wrong, wrong.

Everybody knows tax cuts lead to less tax revenue being collected.

Why else would they ask the question: "How are we going to pay for these tax cuts?"?

;-)

[hollywood]

At this rate, the deficit should be wiped out in another 3.5 months!

[proxy_user]

Quarterly tax payments for the 4-month ‘quarter’ running from Sept 1 to Dec 31 are due on Jan 15. Naturally, the payments were high, particularly if taxpayers took large capital gains or paid out the remaining Sub-C/LLC money to themselves.

[rktman]

So, everybody gets a million dollar check? 🙀😹🍿🍻🇺🇸💸

[Opinionated Blowhard]

This is great but the spendaholics in Congress are spending at a record rate too. We will have a $1 trillion deficit this year and no plan to zero out the deficit. So the record tax collections are cold comfort. What it does point out is that the US doesn’t have a revenue problem or a “deficit” problem — it has a SPENDING problem.

[central_va]

Historically tax rate reductions have increased Federal revenue dramatically.

[Sacajaweau]

The new tax structure is different from any they have come up with since the beginning of our government. The corporate rate alone will snowball income to the government via other doors.

All those folks that got an extra $1000 bucks. Do you think they banked it?? Get real!!

[central_va]

This thread will be ignored by the so called mis informed “deficit” hawks.

[buwaya]

Correct.
The proper comparison is vs the same period in prior years.

[trebb]

And Nancy Pelosi doubles her Valium intake....

[PSUGOP]

It is a record for January so it is a comparison of prior years.

I can’t get the article but it would be interesting to see DEC/JAN compared to prior years.

Lot’s of things go into this figure.....but Dems would tell you it is simply not possible to lower rates and collect more revenue.....despite the historical evidence supporting tax revenue increases. Wait until the companies who said they were bringing back the money actually start to do so. I doubt much of this has actually taken place yet given when the bill was passed. This wave has yet to hit the shores and will be enormous.

All of the revenue generated by companies bringing funds back to the US should be used for debt reduction.

[SunkenCiv]

Thanks Red Badger.

[Rebelrage]

Armageddon I say! People will DIE!!

[buwaya]

Comparables are here -

https://www.fiscal.treasury.gov/fsreports/rpt/mthTreasStmt/backissues.htm

[buwaya]

This looks like typical seasonal conditions.
Revenues are up but so are outlays, net effect on deficit vs 2016 and 2017 is marginal.

Jan 2017 -

Revenues 344,069

Outlays 292,812

Net Deficit -51,257

Jan 2016 -

Revenues 313,579

Outlays 258,416

Net Deficit -55,163

[lurk]

Using Dave Ramsey’s snowball principle, can they take this surplus and pay off one of the smaller lenders that the government owes?

If they keep paying off the next guy in line, pretty soon they’ll make a difference.

I know, that’s not realistic, is it?

[4Liberty]