The 'crumbs' pile up: Feds rake in record tax haul
The stock market has been heaving out of fear of higher deficits as a result of the vast tax cut law signed by President Trump and of course the left is angry about tax cuts just on principle, and both have forecast lower federal revenues as a result of the change. But, well, now we have headlines like "Feds Make History With Record Taxes in First Month of Tax Cuts" and "Monday's Tax Receipts Would Pay For Entire Border Wall."
It goes to show that in the first readings in the contest of whether tax cuts mean more federal revenue or more federal deficits, those who say the latter are losing, squarely.
According to IJR:
The Treasury brought in approximately $361 billion in total tax revenue for the month of January and managed to only spend roughly $311.8 billion. This means it ran a surplus of over $49.2 billion.
Turns out tax cuts bring more money to the federal government, not less, going completely against the conventional wisdom about tax cuts creating deficits. And to follow on from that, if we have a responsible government, it means we can close the deficit in spending and can retire more of the national debt from the enhanced revenues – and pay for social services for the truly needy. That's a beautiful thing.
It also goes to show that a whole lot of "crumbs," as Nancy Pelosi sniffingly called the gains, are piling up.
Let's look at some of those "crumbs" as they now stand: we have workers left and right taking home bonuses. We have businesses once again forming, which is something that extends the tax base. We have consumers spending, which fills state and city coffers some more. We have individual jobs forming at companies of all sorts, which lards up the federal and state coffers even more. We have more people entering the workforce, with some dumping welfare and SSI, to get into the arena again, also contributing to the tax base.
Don Trump, Jr., on his Twitter account, sums it up best:
Those crumbs are really starting to add up...https://t.co/THZWWk4BTZ— Donald Trump Jr. (@DonaldJTrumpJr) February 14, 2018
Here's the best thing: the crumbs aren't done piling up. The knock-on effects from the long overdue tax cuts are only just beginning.