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Tuesday, February 13, 2018
So, The Taxes Went Down And -- Guess What?
It's just been reported that during January, the Treasury collected about $361 billion in total tax revenues and spent approximately $311 billion to run a surplus of roughly $49 billion.
January was the first month under the new tax law that President Donald Trump signed in December.
So, taxes went down and revenue to the government went UP and the government had more money than it needed. But this has almost always proven to be the case when there's a significant tax cut. It happened when John F. Kennedy cut taxes and it happened again when Ronald Reagan cut taxes. Tax cuts stimulate the economy and generate jobs; tax revenue goes up; the government has more money and that chips away at the deficit.
So, again: the federal government this January ran a surplus while collecting record total tax revenues for that month of the year.
And, get this: the $361 billion in total taxes the Treasury collected this January was $11.7 billion more than the the Treasury collected in January of last year (in December 2017 dollars, adjusted using the Bureau of Labor Statistics inflation calculator).
And there's more good news! The Treasury not only collected record taxes in the month of January itself, but has now collected record tax revenues for the first four months of a fiscal year (October through January).
So far in fiscal 2018, the federal government has collected a record $1,130,550,000,000 in total taxes. That's $1.1 TRILLION plus!