Yes, lefties, tax cuts work
The Washington Post's Catherine Rampell is at it again, publishing columns full of junk economics. Here's what she wrote yesterday:
The Republican tax cut is a big, fat failure.
It has achieved none of the things that Republicans promised it would. It didn't reduce deficits. It didn't target the middle class. And it didn't win goodwill with voters.
Yet, for some reason, President Trump wants to do it all over again ... in the next nine days, no less.
I will give her some valuable information that I am sure she will gladly report on the tax cuts, because it's based on the facts.
They are actually working extremely well here in the U.S., and the additional growth from a new one will obviously give the government higher revenue in the long run. It is too bad that both parties spend too much on government, but revenue is not the problem.
Their overspending can be seen in the deficit, which has increased because of the massive debt run-up under President Obama and previous presidents.
Then there's the Federal Reserve: instead of doing anything to check Obama's overspending, it held rates at zero and allowed Obama's pathetic economy to go on. But as economist Herbert Stein has noted, anything that can't go on will stop. So now they are raising rates to get inflation under control, this after years of allowing Obama to print money.
I do not believe that the media ever cared as Obama ran up $10 trillion in debt. In fact, they cheered him on and ripped Republicans whenever they tried to rein in his spending.
President Reagan's and President George W. Bush's tax cuts made the economy grow substantially, and this one will, too. It is extremely obvious, but the media are doing their best to hide the good news.
Obviously, the corporate tax cuts were huge and were going to reduce receipts initially, but the substantial increased growth will yield revenue growth soon.
It is the individual tax receipts that tell the tale. The CBO and others (the media) predicted that individual tax receipts would fall, but from FY2017 to 2018, they actually grew $93 billion to $1.683 trillion. A record.
For comparison, in FY2015, they were $1.54 trillion. In FY2016, they were $1.55 trillion, up only $10 billion in Obama's pathetic economy, and in FY2017, they grew only another $40 billion. So in Trump's first full year, they rose $93 billion precisely because the economy is growing faster and raises are better along with higher dividends and capital gains.
It is truly a shame that the media give so much misinformation to its readers and listeners in order to elect Democrats. It is also a shame that supposed journalists are trying to get back to policies that gave us the slowest economic recovery in seventy years and where more people are dependent on government than giving people, especially the young, minorities, and the poor, opportunities to move up the economic ladder.
The number of people on food stamps, on disability, and on unemployment has been dropping. That obviously also helps the tax cuts pay for themselves but somehow those savings aren't credited to the tax cuts. Why aren't journalists cheering the reductions in dependency instead of rooting for the policies that caused so many to be dependent?
The federal government collected a record $1,683,537,000,000 in individual income taxes in fiscal 2018 (October 2017 through September 2018).
Individual income taxes totaled up to $1.59 trillion in 2017.
The largest share of fiscal 2015's record-setting tax haul came from the individual income tax. That yielded the Treasury $1,540,802,000,000.