Bad news for Dems: Trump tax cuts have led to increased tax revenue
Democrats developed a sudden new concern with the size of budget deficits – something that failed to trouble them as Barack Obama doubled the national debt in just eight years – when President Trump's tax cuts were first proposed. Nancy Pelosi assured us, "[T]his thing will explode the deficit."
And the Congressional Budget Office, sticking to obviously incorrect static model thinking – i.e., that people don't change their behavior when tax rates change – produced an estimate that the deficit would rise from $665 billion to $804 billion.
Now, data are out showing that, just as the Laffer Curve predicts, a reduction in tax rates produced such an increase on economic activity that tax revenues increased.
Investor's Business Daily writes:
The latest monthly budget report from the nonpartisan Congressional Budget Office finds that revenues from federal income taxes were $76 billion higher in the first half of this year, compared with the first half of 2017. That's a 9% jump, even though the lower income tax withholding schedules went into effect in February.
The CBO says the gain "largely reflects increases in wages and salaries."
For the fiscal year as a whole – which started last October – all federal revenues are up by $31 billion. That's a 1.2% in increase over last year, the CBO says.
The Treasury Department, which issues a separate monthly report, says it expects federal revenues will continue to exceed last year's for the rest of the 2018 fiscal year.
The mainstream media are not going to point this out, but fortunately, President Trump is not in the least bit shy about pointing out his successes via Twitter and in public speeches. He has a ripe target here, and he can quote Pelosi and the rest offering phony warnings, and make the point that their concerns about confirming Brett Kavanaugh are equally fatuous.
Isn't it amazing how often good news for Americans is bad news for Dems?