Shrinking Deficit

[MtnBiker]

Larry Kudlow; NRO
Psst, the Deficit’s Shrinking
Why won’t anyone say it?



Here’s one story you won’t find on tomorrow’s front pages: “The U.S. Budget Deficit Is Shrinking Rapidly.” The headline would be accurate, but the mainstream media is much more interested in talking down this booming economy than telling it like it is.


This week’s Treasury report on the nation’s finances for December shows a year-to-date fiscal 2005 deficit that is already $11 billion less than last year’s. In the first three months of the fiscal year that began last October, cash outlays by the federal government increased by 6.1 percent while tax collections grew by 10.5 percent. When more money comes in than goes out, the deficit shrinks.

At this pace, the 2005 deficit is on track to drop to $355 billion from $413 billion in fiscal year 2004. As a fraction of projected gross domestic product, the new-year deficit will descend to 2.9 percent compared with last year’s deficit share of 3.6 percent.

Wire reports are loaded these days with accounts of an expanded trade gap (driven mostly by slower exports to stagnant European and Japanese economies, along with higher oil imports from the peak in energy prices). But there’s not a single report I can find that mentions the sizable narrowing in U.S. fiscal accounts. Behind this really big budget story is the even-bigger story: The explosion in tax revenues has been prompted by the tax-cut-led economic growth of the past eighteen months.

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[no1tovote4]

They won't report this because it will go against all that great economic thinking of our time that taxation is a zero sum game. If you drop taxes you collect less is an assertion of this particular logical fallacy, and this directly flies in the face of that.

Well this and all that great economy we had in the 90s.

 

[freeandfun1]

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I've pointed this out to Sage, but she always says I MUST be wrong. I wonder what her response will be to this? Liberals never want to admit THEY are wrong.

 

[MtnBiker]

I've pointed this out to Sage, but she always says I MUST be wrong. I wonder what her response will be to this? Liberals never want to admit THEY are wrong.

I know what you mean. Just as a reminder this increase in tax revenue that is driving down the deficit supports the Laffer Curve theory.

http://www.usmessageboard.com/forums/showpost.php?p=7478&postcount=6

 

[KarlMarx]

As has been said about a million times on this board (not that I'm exaggerating), the so called "Clinton Surplus" of the 1990s was really the "1994 Republican Congress Surplus" of the 1990s. Why? Because, the 1994 Congress voted to lower the tax on capital gains, which encouraged the buying and selling of stock and bonds. As a result, the net revenues from taxes actually INCREASED and drove the deficit down.

So, it stands to reason that the deficit is now going down as a result of tax cuts.

BTW.... Reagan's tax cuts and increased defense spending is often blamed for the deficits of the 1980s. Not true. The Reagan tax cuts helped to increase tax revenues by an amount that EXCEEDED the increase in defense spending. The actual culprits were the increased social spending by the then Democratically controlled Congress.

BTW#2 ... if liberals are actually concerned about government spending, let's say "OK, you're right" and point out that Social Security, Medicare and Social Programs are the biggest items on the Federal Budget, we'll start there.

 

[freeandfun1]

As has been said about a million times on this board (not that I'm exaggerating), the so called "Clinton Surplus" of the 1990s was really the "1994 Republican Congress Surplus" of the 1990s. Why? Because, the 1994 Congress voted to lower the tax on capital gains, which encouraged the buying and selling of stock and bonds. As a result, the net revenues from taxes actually INCREASED and drove the deficit down.

So, it stands to reason that the deficit is now going down as a result of tax cuts.

BTW.... Reagan's tax cuts and increased defense spending is often blamed for the deficits of the 1980s. Not true. The Reagan tax cuts helped to increase tax revenues by an amount that EXCEEDED the increase in defense spending. The actual culprits were the increased social spending by the then Democratically controlled Congress.

Well, Sagegirl would tell you to post links to support your claims and then when you do, ignore them.

(I have experience)

 

[KarlMarx]

Well, Sagegirl would tell you to post links to support your claims and then when you do, ignore them.

(I have experience)

Bring 'er on!!!!!!!

I'll even find the "missing link"!!!!!

 

[nosarcasm]

the laffer curve still leaves the question what to tax, at what minimum level
to have the greatest economic growth, lowest possible taxes while reaping
a good tax return.

In general the recents changes have taken away of taxes
on wealth and increased the dependence on payroll taxes.

 

[waltky]

Granny says is cause dem politicians keep spendin' money we ain't got...

Feds Collect Record Individual Income Taxes Through June; Still Run $607B Deficit
July 12, 2018 | - The federal government collected a record $1,305,490,000,000 in individual income taxes through the first nine months of fiscal 2018 (October 2017 through June 2018), according to the Monthly Treasury Statement released today.

Despite the record individual income tax collections, the federal government still ran a deficit of $607,099,000,000 over those same nine months, according to the Treasury statement. The approximately $1,305,490,000,000 in individual income taxes that the Treasury collected in October through June of this fiscal year was $71,815,310,000 more (in constant June 2018 dollars) than the $1,233,674,690,000 (in constant June 2018 dollars) in individual income taxes that the Treasury collected in October through June of fiscal 2017—which was the previous record.

Although the federal government collected record individual income taxes in the first nine months of this fiscal year, overall federal tax collections were lower in the first nine months of this fiscal year than they were in any of the previous five fiscal years—including 2013, 2014, 2015, 2016 and 2017. In October through June of this fiscal year, the Treasury collected $2,540,804,000,000 in total taxes. That was down $39,029,250,000 from the $2,579,833,250,000 in total taxes the Treasury collected in the first nine months of fiscal 2017. Corporation income tax collections have also been declining in this fiscal year. In the first nine months of fiscal 2018, the Treasury collected $161,708,000,000 in corporation income. That is $67,964,050,000 less (in constant June 2018 dollars) than the $229,672,050,000 in corporation income taxes (in constant June 2018 dollars) that the Treasury collected in the first eight months of fiscal 2017.

The federal government ran a deficit of $607,099,000,000 during the first nine months of fiscal 2018, because while collecting its $2,540,804,000,000 in total taxes, it spent $3,147,903,000,000. The $2,540,804,000,000 in total tax collections through June included the record $1,305,490,000,000 in individual income taxes; the $161,708,000,000 in corporation income taxes; $847,062,000,000 in social insurance and retirement payroll taxes; $36,998,000,000 in unemployment insurance taxes; $3,312,000,000 in other retirement taxes; $63,039,000,000 in excise taxes, $16,978,000,000 in estate and gift taxes, $28,318,000,000 in customs duties; and $77,899,000,000 in miscellaneous receipts. Including the current month of July, there are three more months in this fiscal year.

Tax amounts were put in constant June 2018 dollars using the Bureau of Labor Statistics inflation calculator.



https://www.cnsnews.com/news/article/terence-p-jeffrey/feds-collect-record-individual-income-taxes-through-june-still-run

https://cdn.cnsnews.com/mtschart1.jpg

 

[yiostheoy]

Larry Kudlow; NRO
Psst, the Deficit’s Shrinking
Why won’t anyone say it?



Here’s one story you won’t find on tomorrow’s front pages: “The U.S. Budget Deficit Is Shrinking Rapidly.” The headline would be accurate, but the mainstream media is much more interested in talking down this booming economy than telling it like it is.


This week’s Treasury report on the nation’s finances for December shows a year-to-date fiscal 2005 deficit that is already $11 billion less than last year’s. In the first three months of the fiscal year that began last October, cash outlays by the federal government increased by 6.1 percent while tax collections grew by 10.5 percent. When more money comes in than goes out, the deficit shrinks.

At this pace, the 2005 deficit is on track to drop to $355 billion from $413 billion in fiscal year 2004. As a fraction of projected gross domestic product, the new-year deficit will descend to 2.9 percent compared with last year’s deficit share of 3.6 percent.

Wire reports are loaded these days with accounts of an expanded trade gap (driven mostly by slower exports to stagnant European and Japanese economies, along with higher oil imports from the peak in energy prices). But there’s not a single report I can find that mentions the sizable narrowing in U.S. fiscal accounts. Behind this really big budget story is the even-bigger story: The explosion in tax revenues has been prompted by the tax-cut-led economic growth of the past eighteen months.

Full Article

… from 2005 ??

 

[yiostheoy]

Granny says is cause dem politicians keep spendin' money we ain't got...

Feds Collect Record Individual Income Taxes Through June; Still Run $607B Deficit
July 12, 2018 | - The federal government collected a record $1,305,490,000,000 in individual income taxes through the first nine months of fiscal 2018 (October 2017 through June 2018), according to the Monthly Treasury Statement released today.

Despite the record individual income tax collections, the federal government still ran a deficit of $607,099,000,000 over those same nine months, according to the Treasury statement. The approximately $1,305,490,000,000 in individual income taxes that the Treasury collected in October through June of this fiscal year was $71,815,310,000 more (in constant June 2018 dollars) than the $1,233,674,690,000 (in constant June 2018 dollars) in individual income taxes that the Treasury collected in October through June of fiscal 2017—which was the previous record.

Although the federal government collected record individual income taxes in the first nine months of this fiscal year, overall federal tax collections were lower in the first nine months of this fiscal year than they were in any of the previous five fiscal years—including 2013, 2014, 2015, 2016 and 2017. In October through June of this fiscal year, the Treasury collected $2,540,804,000,000 in total taxes. That was down $39,029,250,000 from the $2,579,833,250,000 in total taxes the Treasury collected in the first nine months of fiscal 2017. Corporation income tax collections have also been declining in this fiscal year. In the first nine months of fiscal 2018, the Treasury collected $161,708,000,000 in corporation income. That is $67,964,050,000 less (in constant June 2018 dollars) than the $229,672,050,000 in corporation income taxes (in constant June 2018 dollars) that the Treasury collected in the first eight months of fiscal 2017.

The federal government ran a deficit of $607,099,000,000 during the first nine months of fiscal 2018, because while collecting its $2,540,804,000,000 in total taxes, it spent $3,147,903,000,000. The $2,540,804,000,000 in total tax collections through June included the record $1,305,490,000,000 in individual income taxes; the $161,708,000,000 in corporation income taxes; $847,062,000,000 in social insurance and retirement payroll taxes; $36,998,000,000 in unemployment insurance taxes; $3,312,000,000 in other retirement taxes; $63,039,000,000 in excise taxes, $16,978,000,000 in estate and gift taxes, $28,318,000,000 in customs duties; and $77,899,000,000 in miscellaneous receipts. Including the current month of July, there are three more months in this fiscal year.

Tax amounts were put in constant June 2018 dollars using the Bureau of Labor Statistics inflation calculator.



https://www.cnsnews.com/news/article/terence-p-jeffrey/feds-collect-record-individual-income-taxes-through-june-still-run

… Ergo Trump raised income taxes on people while lowering them on corporations although tax cheating corporations got their taxes raised too.

It's all quite complicated.

I think after many many people check their final tax bills for 2018 and 2019 they will vote for Nancy Pelosi in 2020.

 

[TheOldSchool]

Larry Kudlow; NRO
Psst, the Deficit’s Shrinking
Why won’t anyone say it?



Here’s one story you won’t find on tomorrow’s front pages: “The U.S. Budget Deficit Is Shrinking Rapidly.” The headline would be accurate, but the mainstream media is much more interested in talking down this booming economy than telling it like it is.


This week’s Treasury report on the nation’s finances for December shows a year-to-date fiscal 2005 deficit that is already $11 billion less than last year’s. In the first three months of the fiscal year that began last October, cash outlays by the federal government increased by 6.1 percent while tax collections grew by 10.5 percent. When more money comes in than goes out, the deficit shrinks.

At this pace, the 2005 deficit is on track to drop to $355 billion from $413 billion in fiscal year 2004. As a fraction of projected gross domestic product, the new-year deficit will descend to 2.9 percent compared with last year’s deficit share of 3.6 percent.

Wire reports are loaded these days with accounts of an expanded trade gap (driven mostly by slower exports to stagnant European and Japanese economies, along with higher oil imports from the peak in energy prices). But there’s not a single report I can find that mentions the sizable narrowing in U.S. fiscal accounts. Behind this really big budget story is the even-bigger story: The explosion in tax revenues has been prompted by the tax-cut-led economic growth of the past eighteen months.

Full Article

Ah back when Dubya was a “real” republican and anybody who opposed him were RINOs.