Tax cuts bring record revenues to the government... Again
Excerpt: Critics of the Trump tax cuts said they would blow a hole in the deficit. Yet individual income taxes climbed 6% in the just-ended fiscal year 2018, as the economy grew faster and created more jobs than expected.
The Treasury Department reported this week that individual income tax collections for FY 2018 totaled $1.7 trillion. That's up $14 billion from fiscal 2017, and an all-time high. And that's despite the fact that individual income tax rates got a significant cut this year as part of President Donald Trump's tax reform plan.
Bottom Line: At multiple points since last December, I’ve illustrated the point that under the JFK and Reagan tax cuts revenue to the government increased in year one and dramatically over five years as the economy grew and expanded. So, now that the fiscal year has wrapped up, guess what. It happened again.
There are two sides to stories and one side to facts and here’s an important one. Every single person who told you that the Tax Cut and Jobs Act would lead to less revenue to the government lied to you. Every last one of them. Just as they lied to you when they said it wouldn’t help the economy. Just as they lied to you when they said it’d only help the rich. Average net take-home pay is up 6.7% year over year and there’s record revenue pouring into the Treasury.
The only question is why one would be so married to a political party that they’d rather earn less, have a worse economy, less revenue produced by our economy and be lied to every step of the way? Who would vote for that? And yet they do. Crazy. It really is.
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