No, Tax Cuts Aren’t Causing the Latest Deficit Spike

[GURPS]

Not surprisingly, the Republican tax cuts are taking the blame for this year’s extraordinary deficits.

But wait a minute. Overall federal revenues were up in May by $15 billion — that’s a 7% gain over May 2018 — the latest monthly Treasury report shows.

So where did May’s big deficit increase come from? Well, spending in that month was $440 billion. That’s $76 billion — or 21% — more than last year.

Some of that increase in spending in May was the result of a quirk of the calendar. But the same trend holds true for the fiscal year.

For the first eight months of the fiscal year (which started last October), revenues climbed more than $50 billion, compared with the first eight months of the previous fiscal year.

The press has focused on the fact that Trump’s tariffs boosted customs duties by $20 billion so far this year.

But that conveniently overlooks the fact that individual income tax revenues are up by $17 billion, and payroll taxes are up more than $30 billion. Both are signs of a healthy job market that pushed the unemployment rate to 50-year lows and is boosting wages as the labor market tightens.

https://issuesinsights.com/2019/06/13/no-tax-cuts-arent-causing-the-latest-deficit-spike/

 

[Chris0nllyn]

Not surprisingly, the Republican tax cuts are taking the blame for this year’s extraordinary deficits.

But wait a minute. Overall federal revenues were up in May by $15 billion — that’s a 7% gain over May 2018 — the latest monthly Treasury report shows.

So where did May’s big deficit increase come from? Well, spending in that month was $440 billion. That’s $76 billion — or 21% — more than last year.

Some of that increase in spending in May was the result of a quirk of the calendar. But the same trend holds true for the fiscal year.

For the first eight months of the fiscal year (which started last October), revenues climbed more than $50 billion, compared with the first eight months of the previous fiscal year.

The press has focused on the fact that Trump’s tariffs boosted customs duties by $20 billion so far this year.

But that conveniently overlooks the fact that individual income tax revenues are up by $17 billion, and payroll taxes are up more than $30 billion. Both are signs of a healthy job market that pushed the unemployment rate to 50-year lows and is boosting wages as the labor market tightens.

https://issuesinsights.com/2019/06/13/no-tax-cuts-arent-causing-the-latest-deficit-spike/

In other words, this country continually proposes budgets that don't remotely try to lower spending.

The tax code change took most Americans by surprise because they can't read or understand the changes, thus resulting in more individual income tax revenue mentioned. I would say those things have more to do with a complete lack of understanding and not updating withholdings and not "signs of a healthy job market". That's not to say we don't have one, but increased taxes aren't offered up voluntarily.

 

[transporter]

Not surprisingly, the Republican tax cuts are taking the blame for this year’s extraordinary deficits.

But wait a minute. Overall federal revenues were up in May by $15 billion — that’s a 7% gain over May 2018 — the latest monthly Treasury report shows.

So where did May’s big deficit increase come from? Well, spending in that month was $440 billion. That’s $76 billion — or 21% — more than last year.

Some of that increase in spending in May was the result of a quirk of the calendar. But the same trend holds true for the fiscal year.

For the first eight months of the fiscal year (which started last October), revenues climbed more than $50 billion, compared with the first eight months of the previous fiscal year.

The press has focused on the fact that Trump’s tariffs boosted customs duties by $20 billion so far this year.

But that conveniently overlooks the fact that individual income tax revenues are up by $17 billion, and payroll taxes are up more than $30 billion. Both are signs of a healthy job market that pushed the unemployment rate to 50-year lows and is boosting wages as the labor market tightens.

https://issuesinsights.com/2019/06/13/no-tax-cuts-arent-causing-the-latest-deficit-spike/

Jesus...so to point out the stunningly obvious:

1. BOTH the tax cut and spending increases pushed thru in 2017/2018 were done so by the Repub controlled House and Senate. They were BOTH signed off on by our incompetent Republican President.

2. The argument above is perfect the intellectually challenged ignorati types. Absent the tax cuts, revenues would have been higher and the monthly deficit would have been lower.

3. The tax cuts did not create a healthy job market...the jobs market has been expanding for 10 years.

4. In a growing economy, tax revenues SHOULD increase every year. Why the ignorati types can't understand this basic reality is really amazing. The issue is that revenues are LOWER than they would have been because of the tax cuts.

Do you understand any of this comrade?? No? That is not surprising either.

 

[GURPS]

Anyone or Anything that does not conform to YOUR World View is Either Ignorant, Uneducated or Selfish ..... or a Russian Bot or a Russian From Minsk

Every post you make is against anyone or any group that doesn't conform to your propagandist viewpoints.

 

[Yooper]

Jesus...

...comforts me. My prayer is that He will, at some point, comfort you.

--- End of line (MCP)

 

[Yooper]

...this country continually proposes budgets that don't remotely try to lower spending.

^^^This.^^^

The rub is that both sides see their spending as absolutely essential (and thus, non-negotiable). Looking to some of our forum's experts to suggest a way out of this madness.

--- End of line (MCP)

 

[Chris0nllyn]

^^^This.^^^

The rub is that both sides see their spending as absolutely essential (and thus, non-negotiable). Looking to some of our forum's experts to suggest a way out of this madness.

--- End of line (MCP)

Votre in people who care about it and/or havea track record of fiscal conservative voting.

But we live in a world of Trump's GOP. Where someone like Justin Amash (who has that track record) gets ridiculed because he said something bad about Trump.

Amash gone from House Freedom Caucus

Michigan Republican Rep. Justin Amash announced Monday evening he is leaving the influential conservative House Freedom Caucus, just weeks after he attracted the ire of his colleagues by arguing in Twitter posts that President Trump had committed impeachable offenses, Fox News has learned...

forums.somd.com

It'll only change when people actually want fiscal conservatism.

Until then, it'll be "We need to vote a Republican in, no matter who it is, because that's just a little bit better than the alternative...a Democrat in office."

 

[Yooper]

Votre in people who care about it and/or havea track record of fiscal conservative voting.

My sense. Exactly.

But the problem isn't equally distributed between the two major political parties. Though not the greatest, Republicans can be fiscally conservative so I still hold out hope for that party.

But what to do with a Democrat party that is based almost entirely on fiscal irresponsibility? What is to be done about these "we bribe you with free" Democrat politicians and the voters who are attracted/addicted to "The Free" like it was crack cocaine?

--- End of line (MCP)

 

[David]

In other words, this country continually proposes budgets that don't remotely try to lower spending.

Until the bottom falls out and a true national financial crisis becomes apparent, even to those with their head up their ass, nothing is going to change. Even then, Side A will simply blame Side B until people get so fed up that they threaten to start lynching the politicians. It's just the nature of the system:

• The politicians who will promise anything to get re-elected
• The politicians who are bought and paid for (and most of them are due to the never-ending fund raising requirements for the House members to sustain their every-2-year elections)
• The corrupt businessmen who buy the politicians (we really can't just blame the politicians now can we?)
• The bureaucrats who go in and out of the revolving door between the administration and the corporations they serve
• The military-industrial establishment who has some of the citizenry convince that the whole world is out to get us , so we need to keep building a war machine to "defend" ourselves.
• The financial industry which gets rich off of government borrowing.
• and I'm sure there are more...

What can you do? Prepare yourself as best you can for whatever might happen in the next 2-10 years. There won't be any civil war, but there will some pockets of mighty unhappy people who can't afford to buy food.

 

[Chris0nllyn]

My sense. Exactly.

But the problem isn't equally distributed between the two major political parties.

--- End of line (MCP)

Sure it is. What has Trump or Bush done to reduce federal spending?

 

[GURPS]

But we live in a world of Trump's GOP.

FFS Seriously ? Trump's GOP ? What rock have you been living under, Trump doesn't own the GOP, the GOP does not Goosestep To Trump's Beat

Where someone like Justin Amash (who has that track record) gets ridiculed because he said something bad about Trump.

https://www.nationalreview.com/news/justin-amash-leaves-freedom-caucus-to-avoid-being-a-distraction/

In keeping with his reputation as a gadfly willing to buck party leadership, Amash became the first Republican to publicly call for Trump’s impeachment following the release of the Special Counsel Robert Mueller’s final report. In a lengthy Twitter thread, Amash argued that Trump’s attempts to obstruct Mueller’s investigation were a betrayal of the public trust and, as such, constituted grounds for impeachment.

... he deserves ridicule and derision IMHO he said something stupid ..... well some of us do not see obstruction in LEGAL Normal Everyday Decisions by the Executive Branch in spite of what Nadler and CNN tells you

 

[Chris0nllyn]

FFS Seriously ? Trump's GOP ? What rock have you been living under, Trump doesn't own the GOP, the GOP does not Goosestep To Trump's Beat



https://www.nationalreview.com/news/justin-amash-leaves-freedom-caucus-to-avoid-being-a-distraction/


... he deserves ridicule and derision IMHO he said something stupid ..... well some of us do not see obstruction in LEGAL Normal Everyday Decisions by the Executive Branch in spite of what Nadler and CNN tells you

Yes, Trump's GOP.

What happened to repeal and replace Obamacare, national reciprocal gun licenses/2A rights, fiscal conservatism, etc.? Why are fiscal conservatives being championed as "never-Trumpers"? The GOP has certainly followed Trump and his will and anyone who dare offer a hint of criticism gets the wrath.

Mueller said that he Trump had NOT comitted obstruction, he'd have said so. Mueller stated that prosecuting a President isn;t done by the DoJ and it's up to Congress. A member of Congress read all the instances of possible obstruction and made statements that the ball was in Congress' court.

 

[Kyle]

Mueller didn't say "Trump hasn't pissed on a rose bush" either.... Is the standard now that any act you are not expressly cleared of is a crime?

 

[GURPS]

Mueller said that he Trump had NOT comitted obstruction, he'd have said so.

It is a POLTICAL BS Move ... historically Prosecutors said NOTHING in the face of NO Evidence to Indict

 

[Chris0nllyn]

It is a POLTICAL BS Move ... historically Prosecutors said NOTHING in the face of NO Evidence to Indict

But this wasn't a prosecutor and wasn't a typical event. That was pointed out in Mueller's report.

 

[GURPS]

YOUR Opinion

 

[SamSpade]

Though not the greatest, Republicans can be fiscally conservative so I still hold out hope for that party.

I can't recall any Democratic candidate running on a platform that involves reducing spending.
Nearly all of them always run on raising taxes (on someone ELSE) to give stuff away or as Clinton
started calling it - "investing in the future".

 

[Gilligan]

The tax code change took most Americans by surprise because they can't read or understand the changes, thus resulting in more individual income tax revenue mentioned.

And yet most paid less due to the cuts.

Wait...what?

 

[GURPS]

And yet most paid less due to the cuts.

I know I paid Less ..

 

[Kyle]

Likewise.

Enough for three nice additions to my safe.