Tax Revenues Jump 13% To Record High In April — When Will Dems Admit They Were Wrong About Trump’s Tax Cuts?

Economy: The federal government collected far more taxes this April than it did a year ago, despite the “budget busting” Trump tax cuts. So, we’ll ask again: Are the tax cuts paying for themselves?


According to the latest monthly report from the Congressional Budget Office, revenues in April totaled $515 billion — a 13% increase over last April and an all-time high for the month.

For the current 2018 fiscal year, which started last October, revenues are $83 billion higher than they were the year before — an increase of 4.3%. That’s a faster rate of growth than occurred during President Obama’s last years in office. (See nearby chart.)

Individual taxes, the CBO report says, are up 11.5% so far this fiscal year, and payroll taxes are up 2.8%. Both are signs of a healthy labor market, which is creating more jobs, higher wages and, as a result, more tax revenues. Those gains, the CBO says, more than offset the 22% decline in corporate income taxes.

In other words, in a fiscal year that’s seven months old (four of which were after the tax cuts went into effect), federal revenues are higher than ever.

Or, to put it another way, it looks like those of us who predicted the pro-growth tax cuts would at least partially pay for themselves through increased economic growth were correct.

The CBO admitted as much earlier this year, when it sharply increased its forecast for economic growth this year and next, largely because of Trump’s tax cuts. That, in turn, will generate $1 trillion more in revenues than expected.

The pile of misinformation and outright lies about the tax cuts spread by Democrats keeps getting higher.

Democrats claimed the tax cuts would all go to the rich. As we pointed out in this space recently, a new study finds that the tax code is more progressive now than it was before the Trump tax cuts.

They said tax reform would do nothing to spur economic growth, only to see every independent economist boosting their growth projections.

They said the tax cuts would do nothing to help workers, until millions started getting bonuses, raises and more generous benefits in the wake of the corporate income tax cut.

The IBD/TIPP Poll’s Quality of Life Index, meanwhile, reached a 14-year high in April. And since the tax cuts went into effect, the IBD/TIPP Economic Optimism Index has averaged 54.7 (anything above 50 is optimistic). That’s well above the 17-year average of 49.4. In President Obama’s last year in office, it averaged just 48.6.

And, of course, Democrats continue to insist that the tax bill is a budget buster. Even though revenues keep reaching new highs.

Out-of-Control Spending

As we have argued repeatedly in this space, the fiscal problem we face isn’t that we’re taxed too little, but that lawmakers — both Republicans and Democrats — can’t control their spending habits.

While revenues have climbed $83 billion this fiscal year, spending is up $121 billion, the CBO report shows. The category with the biggest spending hike? “Other” — at $44 billion. That is followed by interest on the debt ($25 billion), Social Security ($23 billion) and defense ($17 billion).

The $1.3 trillion monstrosity that the GOP passed in March will only fuel more spending hikes in the coming months, swamping whatever gains we make in revenues.

So let’s review: Democrats promised the country that the Trump tax cuts would do nothing to boost growth and nothing to help working families. That they’d completely bust the budget. And that it would be better to spend the $1.8 trillion rather than “give it away to the rich.”

We doubt we’ll hear Democrats admitting to their flagrant lies and fabrications about the tax cuts. But we do hope that voters hold them to account this fall.


Good News About Trump’s Tax Cuts Keeps Rolling In, So Why Is Public Support Flagging?

It’s Official: Trump Tax Cuts Are Boosting Growth And Mostly Paying For Themselves

Dems Vow To Repeal ‘Parts’ Of GOP Tax Cuts; But Which Ones? 

Quality Of Life Index Hits 14-Year High Under Trump

The post Tax Revenues Jump 13% To Record High In April — When Will Dems Admit They Were Wrong About Trump’s Tax Cuts? appeared first on Investor’s Business Daily.

Source: Business Insider


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