Trump Tax Cuts Generate RECORD Income for Fed
Tax cuts work. And much to the chagrin of Democrats.
When people get their money back, they tend to spend it on tax-generating actions. And that’s just what’s happened under the Trump tax plan.
According to CNS News,
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.
Interestingly, the tsunami effect of the Trump tax cuts haven’t kicked in, and we already see the benefits. So what are we waiting for, right?
First, President Trump’s trade policies need to kick in.
The man who now practices the art of the deal for America began the arduous task of undoing Obama’s and other Leftists’ policies regarding trade. America will soon begin cutting into that over $500 billion trade deficit, as companies begin selling to Asia, specifically China. South Korea has already seen how the president will deal with trade, as he began increasing tariffs on washing machines, and other items. It won’t take long before America’s top five trading partners get the message.
Next, President Trump shifted the war on terror away from America, and onto the rest of the world, specifically the Middle East.
After returning from Saudi Arabia with the biggest arms sales package in history, President Trump made it clear to the Saudis and other Middle Eastern countries that they will protect themselves. Further, if they want access to America’s now booming economy, they will make sure that the world is safe, particularly America.
And what of those corporations Obama said were never coming back to America? Trump brought them back.
Many major corporations have begun investing in America. Why go overseas, when the top market in the world is right in your back yard? So aside from the immediate impact of the tax cuts, the long-range implications have begun…
President Trump’s “America First” policy will keep much needed funding in America. No longer will America be the patsy in the poker game, as Trump cut off the money source to countries.
Finally, President Trump will actually use the federal budget to make much needed repairs to America’s infrastructure.
Has anybody noticed that America’s debt clock growth slowed dramatically under President Trump.
According to The Balance,
The largest number comes from calculating how much the debt increased during Obama’s two terms. On January 20, 2009, when he was sworn in, the debt was $10.626 trillion. On January 20, 2017, when he left, it was $19.947 trillion. That’s why most people say Obama added $9 trillion to the debt, more than any other president.
It’s a little misleading to hold Obama (or any other president) accountable for the deficit incurred during his first year of office. That’s because the previous administration already set the federal budget for that fiscal year.
Before Obama took office, President Bush’s last budget (FY 2009) created a deficit of $1.16 trillion. That fiscal year began on October 1, 2008, and continued until September 30, 2009. That means most of that deficit occurred after Obama took office in January. But since it wasn’t his budget, it’s not accurate to attribute it to him.
FY 2009 – Even though the budget had been approved, Congress added emergency funding to stop the Great Recession. It added the first year’s worth of spending from Obama’s Economic Stimulus Act to the FY 2009 budget. That $253 billion accrues to Obama.
FY 2010 – Obama’s first budget created a $1.294 trillion deficit.
FY 2011 – This budget contributed $1.3 trillion to the debt.
FY 2012 – The deficit was $1.087 trillion.
FY 2013 – This was the first Obama budget where the deficit, $679 billion, was less than $1 trillion. Thank sequestration, which forced a 10 percent cut in spending.
FY 2014 – The deficit was $485 billion.
FY 2015 – The deficit fell further, to $438 billion.
FY 2016 – The deficit rose to $585 billion
Note the rise began in 2016 and continued in 2017. That’s because Obama’s anemic economy began to show its true colors.
Rampant under-employment and 8 years of “quantitative easing” proved to be a fool’s folly. Had it not been for President Trump, the debt would have ballooned easily to $21 trillion.
Currently, the national debt is around $20.6 trillion. It was roughly $20 trillion with Obama left office, thus Trump inherited a $600 billion deficit, and he didn’t ask Obama to write off $787 billion (financial bailout) as Obama requested of Bush.
The CNS article continues to highlight the optimism around the Trump administration:
The $361,038,000,000 in total taxes the Treasury collected this January was $11,747,870,000 more than the $349,290,130,000 that the Treasury collected in January of last year (in December 2017 dollars, adjusted using the Bureau of Labor Statistics inflation calculator).
The Treasury not only collected record taxes in the month of January itself, but has now collected record tax revenues for the first four months of a fiscal year (October through January).
So far in fiscal 2018, the federal government has collected a record $1,130,550,000,000 in total taxes.
Let’s see how things look at the end of next quarter, as some of President Trump’s long-range policies kick in. My bet is things will look very good.