CBO Reports RECORD SURPLUS After Tax Cuts

[Swordsmyth]

Tired of winning yet? All the doom and gloom over the dreaded TRUMP TAX CUTS has proven, once again, to be WRONG. The Congressional Budget Office has released the numbers for April, and, as it turns out, the federal government has collected record revenue along with a record one-month surplus.

​

Part of the CBO report reads:

Estimated Surplus in April 2018: $218 Billion

The federal government realized a surplus of $218 billion in April 2018, CBO estimates—$35 billion larger than the surplus in April 2017.
CBO estimates that receipts in April 2018 totaled $515 billion—$59 billion (or 13 percent) more than those in the same month last year. Individual income and payroll taxes rose by $73 billion (or 20 percent), on net. Nonwithheld payments for those taxes, largely final payments of 2017 taxes, rose by $60 billion. Withholding of individual income and payroll taxes rose by $7 billion (or 4 percent). Withheld taxes rose both because wages and salaries were higher and because April 2018 had one more business day than April 2017. However, those factors were partially offset because the share of wages withheld for taxes was lower, CBO estimates, reflecting the new withholding tables issued in January. Corporate income tax payments declined by $14 billion (or 24 percent).
​

The only bad news is that spending was up to $297 Billion, which was $24 Billion more than this time last year.
According to Market Watch, this breaks the previous surplus record set back in 2001, which was $190 Billion. These latest numbers are $40 Billion MORE than what the CBO had projected. In fact, these numbers prove the original CBO estimate wrong, as they had predicted a record deficit.


http://www.thegatewaypundit.com/2018/05/maga-cbo-projects-record-surplus-after-tax-cuts/

 

[angelatc]

LOL @ "surplus." It isn't a surplus. It means we are paying more taxes than ever before. But spending is up too, sooooo

 

[dean.engelhardt]

Balanced Budget Amendment or GTFO.

 

[dannno]

LOL @ "surplus." It isn't a surplus. It means we are paying more taxes than ever before. But spending is up too, sooooo

Yes, but with significantly lower tax rates the only way to realize a surplus like this is to have increased income/production.

It's sorta like your boss gave you a big raise because the company is doing well, because everybody's taxes are lower, and yes, you will have to pay more money in taxes than last year because you made more, but your tax rate is lower so you are keeping a lot more also.

 

[angelatc]

Yes, but with significantly lower tax rates the only way to realize a surplus like this is to have increased income/production.

It's sorta like your boss gave you a big raise because the company is doing well, because everybody's taxes are lower, and yes, you will have to pay more money in taxes than last year because you made more, but your tax rate is lower so you are keeping a lot more also.

LOL @ "a lot more."

I was an accountant when I worked in corporate America, so you'll have to trust that I have an inkling of how budgets work.

You forgot to address the increase in spending. Bro.

 

[angelatc]

Balanced Budget Amendment or GTFO.

#TaxationIsTheft

 

[dannno]

LOL @ "a lot more."

I was an accountant when I worked in corporate America, so you'll have to trust that I have an inkling of how budgets work.

You forgot to address the increase in spending. Bro.

http://www.ronpaulforums.com/showth...on-in-compensation-cuts-for-federal-employees

http://www.ronpaulforums.com/showthread.php?522045-Trump-proposes-15-billion-spending-cuts

 

[angelatc]

http://www.ronpaulforums.com/showth...on-in-compensation-cuts-for-federal-employees

http://www.ronpaulforums.com/showthread.php?522045-Trump-proposes-15-billion-spending-cuts

Sorry, but all semblance of fiscal responsibility ended when he signed the budget. His budget added 1 TRILLION to the debt in the first year, so forgive me if I don't get excited by some chatter about maybe cutting back 15 billion.

Obama did the same thing, and he structured it so the effects wouldn't be apparent for a decade after his term ended. Trump doubled down on that.

 

[dannno]

Sorry, but all semblance of fiscal responsibility ended when he signed the budget. His budget added 1 TRILLION to the debt in the first year, so forgive me if I don't get excited by some chatter about maybe cutting back 15 billion.

Obama did the same thing, and he structured it so the effects wouldn't be apparent for a decade after his term ended. Trump doubled down on that.

$160 billion is a pretty good chunck of the $1 trillion for one fell swoop, and a sign of things to come in the future (after the wall gets built)

 

[TheCount]

Sorry, but all semblance of fiscal responsibility ended when he signed the budget. His budget added 1 TRILLION to the debt in the first year, so forgive me if I don't get excited by some chatter about maybe cutting back 15 billion.

Obama did the same thing, and he structured it so the effects wouldn't be apparent for a decade after his term ended. Trump doubled down on that.

He's debated this exact same topic and the exact same details in multiple threads. It's willful disbelief.

 

[TheCount]

$160 billion is a pretty good chunck of the $1 trillion for one fell swoop

It's almost like it's tax season or something.

 

[Zippyjuan]

More people paid their taxes later this year. March was a different story from April. https://www.marketwatch.com/story/u...209-billion-in-march-treasury-says-2018-04-11

U.S. runs budget deficit of $209 billion in March, Treasury says


The numbers: The federal government’s budget deficit was $209 billion in March, the Treasury said, up 18% from the same month a year ago. Receipts were $211 billion, down 3%, and spending rose 7% to $420 billion.

What happened: The new tax law continues to widen the deficit, with withholding of individual income and payroll taxes off by 2% in March. In January, the IRS issued new withholding tables based on the law enacted by President Donald Trump in December. Spending was higher in March on Social Security, Medicaid and interest on the public debt. Interest payments were 11% higher, Treasury said.

Big picture: For the first half of the fiscal year, the shortfall is $600 billion, up 14% over the prior fiscal year’s first six months. The Treasury’s latest release comes after the Congressional Budget Office forecast a deficit of $804 billion for the current fiscal year — and a return to trillion-dollar deficits in 2020.

 

[heavenlyboy34]

$160 billion is a pretty good chunck of the $1 trillion for one fell swoop, and a sign of things to come in the future (after the wall gets built)

$160B/$1T= 16%. If you think that's a "pretty good chunk", you and I have different understandings of "big".

 

[Swordsmyth]

$160B/$1T= 16%. If you think that's a "pretty good chunk", you and I have different understandings of "big".

1/7th-1/6th of something is a big chunk, we will see if he does more.

 

[TheCount]

we will see if he does more.

He who? Which part of the $160B came from Trump?


Did he host a telethon? Pledge drive?

 

[dannno]

He who? Which part of the $160B came from Trump?


Did he host a telethon? Pledge drive?

The links I gave are for budget cuts in that range.. but the threads I linked to are probably automatically filtered out of the results you are allowed to view.

 

[TheCount]

The links I gave are for budget cuts in that range.. but the threads I linked to are probably automatically filtered out of the results you are allowed to view.

Do they exceed his proposed increases elsewhere in the budget?

 

[oyarde]

He who? Which part of the $160B came from Trump?


Did he host a telethon? Pledge drive?

That is actually an excellent idea . Trump could do a Jerry Lewis style telethon . I vote yes . Set the precedent .

 

[Jamesiv1]

ETGAGOA

Experience The Great American Greatening of America

 

[Zippyjuan]

Yes, but with significantly lower tax rates the only way to realize a surplus like this is to have increased income/production.

It's sorta like your boss gave you a big raise because the company is doing well, because everybody's taxes are lower, and yes, you will have to pay more money in taxes than last year because you made more, but your tax rate is lower so you are keeping a lot more also.

Lower tax rates have never in the past been offset by higher growth rates.

April is always the best month in terms of deficit/ surplus because that is the month most tax revenues come in. For the current fiscal year we are already running a $600 billion shortfall (fiscal year runs through end of September).