Do you remember all the liberal predictions that the Trump tax cuts would lead to a massive loss of revenue? Well, so far this hasn't happened. In fact, over the last two months (October and November), the FedGov set another record for taxes collected:
And once again we see that tax cuts do not cause deficits: overspending causes deficits:
So if we were not spending so much money than we were four years ago, much less 10 years ago, we would have a surplus and would be paying down the debt.
The federal government collected record total tax revenues of $458,653,000,000 in October and November, the first two months of fiscal 2019, according to the Monthly Treasury Statement released today. (Feds Collect Record Taxes Through November; Still Run $305.4B Deficit)
If we delve more deeply into the numbers, we find that there was a slight drop in individual income tax revenue but that there was a huge hike in corporate income tax revenue! This is revealing because corporate income tax rates were cut by a larger percentage than were individual income tax rates.
Although the total federal taxes collected in October and November set a record, individual income tax collections did not set a record. In October and November of last year, the federal government collected $231,465,760,000 in individual income taxes (in constant November 2018 dollars). In October and November of this year, the federal government collected $222,237,000,000 in individual income taxes—a decline of $9,228,760,000 from the same period last year. . . .
In October and November of fiscal 2019, the Treasury collected $6,354,000,000 in corporation income taxes compared to $1,456,200,000 (in constant November 2018 dollars) collected in October and November of fiscal 2018. That is an increase of $4,897,800,000.
In October and November of fiscal 2019, the Treasury collected $6,354,000,000 in corporation income taxes compared to $1,456,200,000 (in constant November 2018 dollars) collected in October and November of fiscal 2018. That is an increase of $4,897,800,000.
And once again we see that tax cuts do not cause deficits: overspending causes deficits:
Even with these record tax collections, however, the government still ran a deficit of $305,394,000,000 for the first two months of the fiscal year. That is because while collecting a record $458,653,000,000 in taxes, the government spent $764,046,000,000.
So if we were not spending so much money than we were four years ago, much less 10 years ago, we would have a surplus and would be paying down the debt.