As predicted, GOP tax cuts prompt record tax revenues

Remember when Democrats mocked last year’s tax-cut legislation? And Nancy Pelosi called the tax breaks for Americans “crumbs”?

But President Trump and congressional Republicans said they would ignite a booming economy and actually increase federal tax collections from greater economic activity including more consumer spending, business investments, higher wages and even employee bonuses.

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Well, guess what? Just 47 weeks after Trump put his flamboyant signature on the bill, it’s all happening.

Unemployment is at an historic low. Employment is at an all-time high. Wages are growing after years of stagnation.

And now from all that increased economic activity, the federal government has just reported historic record tax revenues in October, the first month of the new fiscal year, of $252,692,000,000.

That’s more than $11.4 billion above revenue for October of last year, which was the previous record tax revenue for an October.

And it did this by collecting more than $3 billion less in personal income taxes, thanks to the tax cuts.

The new revenues were the result of increased business taxes because of increased business. Here’s how much different it was:

Corporation income tax receipts to the U.S. Treasury this year in October were a whopping $8,000,000,000. This compares to the previous October’s $3.8 billion.

Despite the record tax revenues in October, the federal government ran a deficit of $100.5 billion that month because, spending. That’s a problem that newly-elected members of Congress such as Indiana’s senator-elect Mike Braun, a businessman, said would be a major target in 2019.

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When he signed the tax cut legislation just before Christmas last December, Trump said he knew Democrats would “really regret” not supporting the measure. Maybe not.

During this fall’s acrimonious midterm campaigns, House Democrat leader Nancy Pelosi said among the first things her party would seek to do come January is kill the tax cuts, piece by piece.

Apparently, American voters agreed with her. Democrats flipped upwards of 40 House seats from GOP control and come January, will take over the House and all its powerful committees.

Proving once again that Americans hardly ever vote out of gratitude.

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John Stossel 12:00 AM | April 24, 2024
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