Taxes And Spending

(CNSNews.com) - The federal government collected record total tax revenues of $470,706,000,000 in October and November, the first two months of fiscal 2020, according to the Monthly Treasury Statement released today.

Despite collecting that record amount in taxes, however, the federal government still ran a deficit of $343,360,000,000 during October and November because it spent $814,012,000,000 in those two months.

Folks -- This proves the Trump tax cut did not reduce the amount of money flowing to the government. A tax cut usually improves the economy and adds more taxes to the government. And the above news statement proves we do not have an under-taxing problem, we have an over-spending problem. Blame both the democrats and the republicans.

 

Democrats tax more, spend more.
Republicans borrow more, spend more.

It will be interesting to see if Trump raises the debt more in his first four years than Obama did - he's on track to do so, and
he didn't even have the drag of two wars and a recession.

 

cutting taxes reduces the amount of revenue you would otherwise collect. that is just a basic mathematical fact.

 

If you remove deficit spending most economists estimate our growth would have been near 0% if not negative. We will always have “record” tax revenue simply due to inflation.

 

I don't know which economist arrived at this conclusion. Government Consumption and Investment contributed 0.28% to our 2.1% headline figure in Q3 2019.

Perhaps you're suggesting that these are estimates for Q4 GDP, which is a stretch given our current personal consumption expenditure and employment figures. It's an interesting prediction, but economist don't have the best track records.

 

ONLY if nothing else changes.
Perhaps you have heard the saying that 10% of something is worth more than 100% of nothing? Applies here.
If the tax cut result in greater sales and profits, then those number produce an increase in revenue. At the same time, if a high tax rate puts companies our of business or drives them off-shore, the revenue will decrease and the taxes generated will follow suit. Trump changed the corporate tax to bring it into line with the world competition for just that reason- to bring corporations back home and keep them here.

 

Third quarter growth was at 1.9% per the reports I have seen. A number that was unacceptable during Obama.

 

Here's how a tax cut works to increase money flowing to the government -- When taxes are cut people have more money to spend on products and services thus companies hire more to fill the demand for these products and services. That action removes people from receiving unemployment checks which saves the government money. The same people will now pay payroll taxes from their paychecks and pay more sales taxes when they purchase goods and services. Simply put -- The better the economy (like Trump's economy) the more money the government collects. The lower the unemployment rate (like Trump's unemployment numbers) the more taxes the government collects.

 

and his cuts didn't work. businesses are not coming back here, and are still leaving here. We collected less revenue than we otherwise would have, without the tax cuts. Basic math.

 

Not quite. 2.1%. Government Consumption Expenditures and Gross Investment increased 1.6% from the preceding period, which contributed 0.28% to overall GDP.

https://apps.bea.gov/iTable/iTable.cfm?reqid=19&step=3&isuri=1&nipa_table_list=1&categories=survey

As for the economy under Obama, you're not thinking about this in context. For most of his tenure, unemployment was north 5.0%, average annualized GDP was 2.1%, and the economy experienced two economic contractions (negative GDP growth) in Q1 2011 and 2012. You've signed three major pieces of economic legislation and the Federal Reserve is engaging in more monetary accommodation with QE3.

Given these factors, it's not unreasonable to say suggest the economy should be preforming better.

 

Perhaps you missed the first line in first post of this thread:

(CNSNews.com) - The federal government collected record total tax revenues of $470,706,000,000 in October and November, the first two months of fiscal 2020, according to the Monthly Treasury Statement released today.

 

yes, revenue increase year over year, every year, absent a recession. Basic math. If you collect something at 35%, and then cut that percentage to 30%, you will collect less than you otherwise would have.

 

Basic repetition.

 

facts don't change. Not sure what you expected me to say that is any different? It's a basic fundamental mathematical fact that if you cut the percentage rate at which you collect something, you will collect less of that something.

 

Tax cuts occur when taxes are reduced to balance a budget. What occurs during deficit spending are not cuts but deferrals.
I bet they wouldn't get much traction for "tax deferrals".

 

How much of that money flowing into the treasury is from Dirty Donalds TARIFFS ON THE AMERICAN CONSUMER?????

 

ONLY if nothing else changes.

Let's say that you tax sales 20%, and an item is priced at $100- and that has limited it's sales because it is overpriced... and China sells it cheaper. Let's say you sell 10 a day, $1000 sales, $200 tax revenue.
So you cut the tax to 10% which allows the price to drop $10 to $90, and an American manufacturer to compete with the China product- so the sales double to 25 a day. Now you are have $2250 in sales, $225 in tax revenue. You also have expansion of the business, potentially more jobs and a number of other fringe benefits. The company has more profit because it's hard overhead hasn't changed, but it's gross revenue has- so it makes more profit, and pays more taxes on that profit.

Yes, 2+2 is always 4, at least for most of us. That's basic math. This is more than that, because when you change the numbers in the formula you create new possibilities, and the resulting bottom line reflects that.

 

I'll try this but I don't expect the lefties to agree -- one man pays the government $10 a week in taxes. The government collects from him $520 annually. The man's taxes are cut by $2 so he now pays $8 a week and the government collects from him $416 annually. Then a second man gets a job and now goes off the dole. He starts paying the government $8 a week in taxes. Now the government is collecting $832 annually (and not paying out to the second man). So the tax cut that stimulated the economy and provided jobs increased the government's revenue by $312 (not counting how much they saved by not paying out unemployment benefits). Simply stated -- Better economy produces more revenue for the government. Capeesh?

 

Nothing else did change.

All well and good. But the economy didn't suddenly sky rocket and GDP didn't quadruple after the tax cuts. Growth remained the same after the cuts, hence..........math. We collected less revenue than we otherwise would have had we not cut the rate at which we collect it.

 

but jobs aren't created because someone got a tax cut. Jobs are created for a demand for increased production. We have 40 years of evidence that shows supply side "reaganomics" does not work. All it does is explode the deficit and debt. You get a short term boost in GDP, usually about 2 quarters, then that's it.

 

Reducing the tax rate does not necessarily reduce revenue. There's a lot of debate about the specific shape of the Laffer curve and where we are on it, but tax cuts can stimulate growth, which can result in additional revenue due to more taxable income -- rate lower, revenue higher. I don't think any modern economist would argue that all tax cuts result in revenue loss and all tax hikes result in revenue gains.

 

Jobs can be created by increased demand, but that isn't the only way. Decreased costs can also lead to job growth. Increased demand is not the only thing that drives businesses to increase production.

 

.we spend to much and we tax too much.


We expect the government to do too much..

Time to gut the federal government..

 

Believe what ever you want; it works for the flat earth people.

 

Thats a lot of debate about how the economy works...

Seems to me we should just shrink the gov't down to match revenues.

I propose we start by defunding the BATFE and the DEA.