The tax cut didn't hurt the deficit

[Swordsmyth]

The federal government collected a record $1,665,484,000,000 in taxes last year, making it the best year of income for the government on record.

CNS News reports (https://www.cnsnews.com/news/article/terence-p-jeffrey/1665484000000-feds-collect-record-individual-income-taxes-calendar) that the December monthy receipts statement (https://www.fiscal.treasury.gov/reports-statements/mts/current.html) from the U.S. Department of the Treasury lists 2018 as the best year for the feds ever, even though the president signed a major tax break into law at the end of 2017.
"The real federal individual income tax revenues collected in calendar 2018 were $9,312,450,000 more than the real individual income tax revenues collected in calendar year 2017," CNS reports, even though 2017 was itself a record breaking year for tax receipts (that year, the federal government collected an astounding $1,656,171,550,000).
The massive tax cut did impact the federal government in overall tax collections. Those declined a little, from $3,407,503,740,000 to $3,330,470,000,000. Much of that decline came in the form of lost corporate income taxes.

Corporation income tax collections declined significantly from calendar year 2017 to calendar year 2018. In calendar 2017, the Treasury collected $290,978,980,000 in corporation income taxes (in constant December 2018 dollars). In calendar 2018, the Treasury collected $195,790,000,000 in corporation income taxes—a drop of $95,188,980,000.


But clearly, the government isn't in dire straits — at least, until you consider the spending.

The good news is, of course, that the tax cuts have pushed tax receipts higher — for now. Democrats have pledged to re-visit the Trump corporate tax cuts as soon as they have an opportunity.

More at: https://www.dailywire.com/news/43496/federal-government-collected-more-taxes-2018-ever-emily-zanotti

Tax rates are probably still above the "optimal" rate and further cuts would still increase economic activity enough to increase receipts.

[Zippyjuan]

(article agrees that tax collections were down from the previous year)


But clearly, the government isn't in dire straits — at least, until you consider the spending.


https://www.pbs.org/newshour/economy/u-s-budget-deficit-running-over-40-percent-higher-than-last-year


U.S. budget deficit running over 40 percent higher than last year


WASHINGTON — The federal budget deficit in December totaled $13.5 billion, helping to push the deficit for the first three months of this budget year up 41.8 percent from the same period the previous year.

The Treasury Department said Wednesday that the budget deficit from October through December totals $318.9 billion, up from a deficit of $225 billion for the same three months in the previous year.


More at link.

[Brian4Liberty]

It’s a spending and debt problem.

[Swordsmyth]

https://www.pbs.org/newshour/economy/u-s-budget-deficit-running-over-40-percent-higher-than-last-year



More at link.

It's the spending, just as we told you all along.

[Superfluous Man]

The good news is, of course, that the tax cuts have pushed tax receipts higher — for now.

If that's true, then it's bad news, not good news.

But it doesn't look like your quotes in the OP support this claim. It looks to me like it says that individual tax receipts are up, but corporate tax receipts are down by a larger amount, so that total tax receipts are down.

[Swordsmyth]

If that's true, then it's bad news, not good news.

But it doesn't look like your quotes in the OP support this claim. It looks to me like it says that individual tax receipts are up, but corporate tax receipts are down by a larger amount, so that total tax receipts are down.
There are other Non-Income Tax receipts that are also up due to the increased economic activity caused by the cuts and total receipts are up.

It would be best to cut taxes so far that receipts went down if we cut spending too but any cut is good news and it is good news that the left can't claim that the cut hurt the deficit as an argument to increase taxes.

[TheCount]

Sounds legit.

[Zippyjuan]

There are other Non-Income Tax receipts that are also up due to the increased economic activity caused by the cuts and total receipts are up.

It would be best to cut taxes so far that receipts went down if we cut spending too but any cut is good news and it is good news that the left can't claim that the cut hurt the deficit as an argument to increase taxes.

Like tariffs. Which are hidden taxes. (your own article noted that tax receipts WERE lower)

[Swordsmyth]

Like tariffs. Which are hidden taxes. (your own article noted that tax receipts WERE lower)
Tariffs are the best form of taxation and total receipts were UP, only certain categories were down.

[Zippyjuan]

Tariffs are the best form of taxation and total receipts were UP, only certain categories were down.

Let's replace all our taxes with tariffs. We only need a 200% tariff to do it! Triple prices on everything! It will do wonders for the economy!

Tariffs are hidden taxes. They hide in the prices we pay for goods. "Stealth taxation". Same as a "secret" national sales tax.

[Swordsmyth]

Let's replace all our taxes with tariffs. We only need a 200% tariff to do it! Triple prices on everything! It will do wonders for the economy!

Tariffs are hidden taxes. They hide in the prices we pay for goods. "Stealth taxation". Same as a "secret" national sales tax.
It would be an improvement but we don't need to do that, we can cut spending instead, tariffs are avoidable and encourage domestic wealth production.
If any kind of tax is too high it will be bad but tariffs are the best kind.

[Zippyjuan]

It would be an improvement but we don't need to do that, we can cut spending instead, tariffs are avoidable and encourage domestic wealth production.
If any kind of tax is too high it will be bad but tariffs are the best kind.

So why don't we cut spending? Republicans used to claim they were for it (when they were not in power- they raised spending while in control). Tariffs hit lower incomes the hardest since they spend the highest portion of their income on goods and services (and are likely not currently paying anything in income taxes- half all filers don't).

[Swordsmyth]

So why don't we cut spending? Republicans used to claim they were for it (when they were not in power- they raised spending while in control).
I'm all for it but you are always against it.


Tariffs hit lower incomes the hardest since they spend the highest portion of their income on goods and services (and are likely not currently paying anything in income taxes- half all filers don't).
Tariffs don't hit the poor hardest, they create well paying jobs that lift them out of poverty.

[Zippyjuan]

I'm all for it but you are always against it.


Tariffs don't hit the poor hardest, they create well paying jobs that lift them out of poverty.

Tariffs raise costs to employers who cut back on labor costs to try to stay in business. That means fewer workers and lower pay for those who remain.

[Swordsmyth]

Tariffs raise costs to employers who cut back on labor costs to try to stay in business. That means fewer workers and lower pay for those who remain.
Only a few and only temporarily, far more other businesses are protected from foreign hostile government intervention and hire more people at higher wages who then can afford to patronize the few businesses so that they can hire more people at higher wages.

You don't want your tariffs too high but all other taxes cause businesses to hire less people as well without any positive side effects.