U.S. Posts Largest-Ever Monthly Budget Deficit in February

[Denizen]

The budget deficit keeps getting bigger and bigger as tax revenues continue to fall.

The USA is in a bad place if a recession hits because the government's capability to use fiscal policy to defend against a recession will be severely impaired by the huge budget deficits.

The government debt keeps accumulating and it won't be long before the interest payments are so high the debt is self-sustaining with positive feedback causing acceleration of debt accumulation.

Trump has trashed world trade with his trade war which could have further negative consequences.

Bloomberg - Are you a robot?

U.S. Posts Largest-Ever Monthly Budget Deficit in February
By Katia Dmitrieva , Laura Davison , and Saleha Mohsin
March 23, 2019, 1:00 AM GMT+7 Updated on March 23, 2019, 3:04 AM GMT+7

Shortfall rises 40% to $544b in first 5 months of fiscal year
Corporate, income taxes decline as tariff revenue climbs

The U.S. posted its biggest monthly budget deficit on record last month, amid a 20 percent drop in corporate tax revenue and a boost in spending so far this fiscal year.
The budget gap widened to $234 billion in February, compared with a fiscal gap of $215.2 billion a year earlier. That gap surpassed the previous monthly record of $231.7 billion set seven years ago, according to data compiled by Bloomberg.
February’s shortfall helped push the deficit for the first five months of the government’s fiscal year to $544.2 billion, up almost 40 percent from the same period the previous year, the Treasury Department said in its monthly budget report Friday. The release was delayed a week by the government shutdown earlier this year.
The U.S. posts its biggest monthly budget deficit on record
Receipts dipped less than 1 percent to $1.3 trillion in the October-February period from the previous year, while spending accelerated 9 percent to $1.8 trillion.
The fiscal shortfall is widening following President Donald Trump’s $1.5 trillion tax-cuts package that’s weighing on receipts and raising concerns about the national debt load, which topped a record $22 trillion last month.
Federal Reserve Chairman Jerome Powell reiterated his concern over the government deficit in a press conference Wednesday, saying that the nation’s growing debt pile needs to be addressed. At the same time, there’s a shift among some economists -- led by proponents of Modern Monetary Theory -- on the dangers of a growing deficit, with low inflation and cheap borrowing costs suggesting there’s room for additional spending.
The budget deficit as a share of gross domestic product is expected to widen to 5.1 percent this year, up from 3.8 percent a year ago, according to projections from the White House Office of Management and Budget. The shortfall is expected to be 4.9 percent of GDP in 2020, and further narrow every year through 2024, according to the estimates.
MMT Bursts From Obscurity Helped by Trump Deficits, ‘AOC Factor’
The Treasury data show tax receipts declined for both corporations and individuals in the five-month period, while revenue from customs duties almost doubled, boosted by income from tariffs imposed by the Trump administration.
The 2017 tax law slashed the corporate tax rate from 35 percent to 21 percent.
Corporations have so far this fiscal year paid $59.2 billion, compared to $73.5 billion at the point in 2018, when the tax law was only partially in effect for some corporations. In 2017, however, the year before the law was enacted, corporations had paid $87.4 billion at this point in the year.
In a briefing with reporters on Friday before Treasury released the budget data, officials attributed the drop in corporate tax revenues to the front-loading of accelerated expensing and other such items, and reiterated the administration’s view that the cuts would pay off with faster economic growth.
The officials said the administration has been clear the tax cuts would pay for themselves over time, not immediately.
Individual income tax receipts dropped slightly from this point last year, but have risen compared to some years before the tax law. Despite the law cutting tax rates for most people, rising wages and lower unemployment have spurred higher tax revenue.
“It’s not an accident that this economy is doing so well, it comes in no small part from business tax” reductions, economist Stephen Moore, Trump’s pick to be a Fed governor, said in an interview on Bloomberg TV on Friday. “We’ve just got to get the spending” under control but no party is in the mood for that, he added.
Trump’s 2020 election bid is beginning to ramp up and he’s eager to show that his three-pronged economic agenda of tax cuts, deregulation and new trade deals have spurred growth. However, key indicators, such as business investment in equipment and machinery, haven’t expanded greatly despite tax policies prodding companies to spend more. The Federal Reserve this week acknowledged that interest rates could be on hold for “some time” a sign the central bank is cautious about economic growth potential.

 

[Oddball]

Wasn't any big deal to you moonbat asswipes when eight years of deficits under Oboingo doubled the federal debt, so why does it matter now?

 

[my2¢]

Democrats and Republicans don't want to deal with the deficit, just point the finger. Administration by administration, it has been one disaster after another.

 

[Daryl Hunt]

Democrats and Republicans don't want to deal with the deficit, just point the finger. Administration by administration, it has been one disaster after another.

Let's take a fast look. Okay, more jobs are being done. It shows in the unemployment roles. Now, here is the truth.

Only those actively looking are counted on that role. The ones that just gave up and went home are no longer counted.

Yes, there are more jobs. But it's not necessarily being done by more people. We have had a slight decrease in full time employment but a huge increase in part time employment. Walmat used to have 60% full time and 40% part time workers. But right around 2010, they changed to 40 full time and 60 part time. How do I know this? I used to work for that sorry company. Today, the ratio for part time versus full time is even worse in Walmart and many are afraid for their jobs even if they are only working part time. Couples work there so that both of them can have an income equal to a full time job. The part time jobs are counted with the same levy that the full time jobs are on the Employment Listings you keep hearing about doing so well.

More people are working 2 part time jobs or sometimes 3 in a given household.

Those people are also slowly sinking. Even with the minimum wage increases, the cost of living outstrips the COL. Each year, they sink further into being poor. The Middle Class is all but gone.

In the 60s, we didn't count part time work against the employed listings. You had to have a full time job. Mostly, it was the man that worked and the women weren't counted. The reported employment rate was hovering right around 6 percent. Today, the employment rate is listed right around 5 percent give or take. This is for all men and women. Now, let's remove the part time jobs from the count. All of a sudden we are at about a 25% unemployment rate using the same way it used to be reported even with counting women in the figures. The Unemployment rate during the depression before the CCC and WPA was 24%. What is the difference? We, the Sheep are told we are doing better. The Government is lying out of it's ass to prevent panic. That's the only difference between a recession and a depression.

If you are doing better, good for you but the majority of the country is slowly slipping.



And don't bother screaming, "Cite, Cite, Cite" this has already been covered over and over. Each and every point. And that generates more "Jobs" but less taxable income. In otherwords, deficits grow.

 

[sparky]

In the 60s, we didn't count part time work against the employed listings. You had to have a full time job. Mostly, it was the man that worked and the women weren't counted. The reported employment rate was hovering right around 6 percent. Today, the employment rate is listed right around 5 percent give or take. This is for all men and women. Now, let's remove the part time jobs from the count. All of a sudden we are at about a 25% unemployment rate using the same way it used to be reported even with counting women in the figures. The Unemployment rate during the depression before the CCC and WPA was 24%. What is the difference? We, the Sheep are told we are doing better. The Government is lying out of it's ass to prevent panic. That's the only difference between a recession and a depressi

Bravo Daryl!

Perspective , especially the broader overall objective , is something most do not have when debating economics

Most are 'point in time' , the (insert potus) administration , offer ludicrous if not misleading accountability

~S~

 

[mr jones]

Wasn't any big deal to you moonbat asswipes when eight years of deficits under Oboingo doubled the federal debt, so why does it matter now?

Does it matter to you that everything you just spewed is an easily disproven lie? I bet not. You trump stooges avoid facts like you avoid bath water- here are some facts to go along with your bizarre right wing fake media garbage-

President Bush's last budget, for Fiscal Year 2009, created a deficit of $1.16 trillion. That fiscal year began on October 1, 2008, and continued until September 30, 2009. Although most of that deficit occurred after Obama took office, it was a result of Bush's budget.


Similarly, the first deficit that occurred after President Trump took office was due to Obama's last budget. Here are the deficits by year that can accurately be attributed to Obama.


FY 2009 - Even though the budget had been approved, Congress added emergency funding to stop the Great Recession. It added the first year's spending from Obama's Economic Stimulus Act to the FY 2009 budget. That $253 billion accrues to Obama.
FY 2010 - Obama's first budget created a $1.294 trillion deficit.
FY 2011 - This budget deficit was $1.3 trillion. Defense spending hit $855 billion. Republicans stalled on raising the debt ceiling, creating a debt ceiling crisis.
FY 2012 - The deficit was $1.087 trillion.
FY 2013 - This was the first Obama budget where the deficit, $679 billion, was less than $1 trillion. Thank sequestration. It forced a 10 percent cut in spending.
FY 2014 - The deficit was $485 billion. Tax revenue rose to $3.02 trillion.
FY 2015 - The deficit fell further to $438 billion.
FY 2016 - The deficit rose to $585 billion. Congress added $58.6 billion to pay for the Afghanistan War.
FY 2017 - The deficit was $666 billion. Congress added $100 billion to Obama's budget request after Trump took office.
I know, like most trumpster divers, you are mathematically challenged, so I added up the deficits for each year under Obama and the result is 6.352 trillion added to the debt due to Obama's budgets. Any other additions to the public debt is not attributable to any president's budgets, but non-discretionary items such as interest and social security outlays and the like.

 

[Harpy Eagle]

Wasn't any big deal to you moonbat asswipes when eight years of deficits under Oboingo doubled the federal debt, so why does it matter now?

spoken like the true Trump sheep that you are.

 

[Harpy Eagle]

Democrats and Republicans don't want to deal with the deficit, just point the finger. Administration by administration, it has been one disaster after another.

Let's take a fast look. Okay, more jobs are being done. It shows in the unemployment roles. Now, here is the truth.

Only those actively looking are counted on that role. The ones that just gave up and went home are no longer counted.

Yes, there are more jobs. But it's not necessarily being done by more people. We have had a slight decrease in full time employment but a huge increase in part time employment. Walmat used to have 60% full time and 40% part time workers. But right around 2010, they changed to 40 full time and 60 part time. How do I know this? I used to work for that sorry company. Today, the ratio for part time versus full time is even worse in Walmart and many are afraid for their jobs even if they are only working part time. Couples work there so that both of them can have an income equal to a full time job. The part time jobs are counted with the same levy that the full time jobs are on the Employment Listings you keep hearing about doing so well.

More people are working 2 part time jobs or sometimes 3 in a given household.

Those people are also slowly sinking. Even with the minimum wage increases, the cost of living outstrips the COL. Each year, they sink further into being poor. The Middle Class is all but gone.

In the 60s, we didn't count part time work against the employed listings. You had to have a full time job. Mostly, it was the man that worked and the women weren't counted. The reported employment rate was hovering right around 6 percent. Today, the employment rate is listed right around 5 percent give or take. This is for all men and women. Now, let's remove the part time jobs from the count. All of a sudden we are at about a 25% unemployment rate using the same way it used to be reported even with counting women in the figures. The Unemployment rate during the depression before the CCC and WPA was 24%. What is the difference? We, the Sheep are told we are doing better. The Government is lying out of it's ass to prevent panic. That's the only difference between a recession and a depression.

If you are doing better, good for you but the majority of the country is slowly slipping.



And don't bother screaming, "Cite, Cite, Cite" this has already been covered over and over. Each and every point. And that generates more "Jobs" but less taxable income. In otherwords, deficits grow.

Now, lets add some facts to you little fantasy...https://www.advisorperspectives.com...the-ratio-of-part-time-employed-february-2019

 

[Crepitus]

Democrats and Republicans don't want to deal with the deficit, just point the finger. Administration by administration, it has been one disaster after another.

Let's take a fast look. Okay, more jobs are being done. It shows in the unemployment roles. Now, here is the truth.

Only those actively looking are counted on that role. The ones that just gave up and went home are no longer counted.

Yes, there are more jobs. But it's not necessarily being done by more people. We have had a slight decrease in full time employment but a huge increase in part time employment. Walmat used to have 60% full time and 40% part time workers. But right around 2010, they changed to 40 full time and 60 part time. How do I know this? I used to work for that sorry company. Today, the ratio for part time versus full time is even worse in Walmart and many are afraid for their jobs even if they are only working part time. Couples work there so that both of them can have an income equal to a full time job. The part time jobs are counted with the same levy that the full time jobs are on the Employment Listings you keep hearing about doing so well.

More people are working 2 part time jobs or sometimes 3 in a given household.

Those people are also slowly sinking. Even with the minimum wage increases, the cost of living outstrips the COL. Each year, they sink further into being poor. The Middle Class is all but gone.

In the 60s, we didn't count part time work against the employed listings. You had to have a full time job. Mostly, it was the man that worked and the women weren't counted. The reported employment rate was hovering right around 6 percent. Today, the employment rate is listed right around 5 percent give or take. This is for all men and women. Now, let's remove the part time jobs from the count. All of a sudden we are at about a 25% unemployment rate using the same way it used to be reported even with counting women in the figures. The Unemployment rate during the depression before the CCC and WPA was 24%. What is the difference? We, the Sheep are told we are doing better. The Government is lying out of it's ass to prevent panic. That's the only difference between a recession and a depression.

If you are doing better, good for you but the majority of the country is slowly slipping.



And don't bother screaming, "Cite, Cite, Cite" this has already been covered over and over. Each and every point. And that generates more "Jobs" but less taxable income. In otherwords, deficits grow.

Now, lets add some facts to you little fantasy...https://www.advisorperspectives.com...the-ratio-of-part-time-employed-february-2019

View attachment 251912

Question!

Reading your link does not tell us whether the 35 hour cutoff to be considered full time must be achieved in a single job. I ask because I know a number of people with two jobs.

 

[Harpy Eagle]

Democrats and Republicans don't want to deal with the deficit, just point the finger. Administration by administration, it has been one disaster after another.

Let's take a fast look. Okay, more jobs are being done. It shows in the unemployment roles. Now, here is the truth.

Only those actively looking are counted on that role. The ones that just gave up and went home are no longer counted.

Yes, there are more jobs. But it's not necessarily being done by more people. We have had a slight decrease in full time employment but a huge increase in part time employment. Walmat used to have 60% full time and 40% part time workers. But right around 2010, they changed to 40 full time and 60 part time. How do I know this? I used to work for that sorry company. Today, the ratio for part time versus full time is even worse in Walmart and many are afraid for their jobs even if they are only working part time. Couples work there so that both of them can have an income equal to a full time job. The part time jobs are counted with the same levy that the full time jobs are on the Employment Listings you keep hearing about doing so well.

More people are working 2 part time jobs or sometimes 3 in a given household.

Those people are also slowly sinking. Even with the minimum wage increases, the cost of living outstrips the COL. Each year, they sink further into being poor. The Middle Class is all but gone.

In the 60s, we didn't count part time work against the employed listings. You had to have a full time job. Mostly, it was the man that worked and the women weren't counted. The reported employment rate was hovering right around 6 percent. Today, the employment rate is listed right around 5 percent give or take. This is for all men and women. Now, let's remove the part time jobs from the count. All of a sudden we are at about a 25% unemployment rate using the same way it used to be reported even with counting women in the figures. The Unemployment rate during the depression before the CCC and WPA was 24%. What is the difference? We, the Sheep are told we are doing better. The Government is lying out of it's ass to prevent panic. That's the only difference between a recession and a depression.

If you are doing better, good for you but the majority of the country is slowly slipping.



And don't bother screaming, "Cite, Cite, Cite" this has already been covered over and over. Each and every point. And that generates more "Jobs" but less taxable income. In otherwords, deficits grow.

Now, lets add some facts to you little fantasy...https://www.advisorperspectives.com...the-ratio-of-part-time-employed-february-2019

View attachment 251912

Question!

Reading your link does not tell us whether the 35 hour cutoff to be considered full time must be achieved in a single job. I ask because I know a number of people with two jobs.

Two part time jobs do not equal a full time job.


Sent from my iPhone using USMessageBoard.com

 

[Crepitus]

Democrats and Republicans don't want to deal with the deficit, just point the finger. Administration by administration, it has been one disaster after another.

Let's take a fast look. Okay, more jobs are being done. It shows in the unemployment roles. Now, here is the truth.

Only those actively looking are counted on that role. The ones that just gave up and went home are no longer counted.

Yes, there are more jobs. But it's not necessarily being done by more people. We have had a slight decrease in full time employment but a huge increase in part time employment. Walmat used to have 60% full time and 40% part time workers. But right around 2010, they changed to 40 full time and 60 part time. How do I know this? I used to work for that sorry company. Today, the ratio for part time versus full time is even worse in Walmart and many are afraid for their jobs even if they are only working part time. Couples work there so that both of them can have an income equal to a full time job. The part time jobs are counted with the same levy that the full time jobs are on the Employment Listings you keep hearing about doing so well.

More people are working 2 part time jobs or sometimes 3 in a given household.

Those people are also slowly sinking. Even with the minimum wage increases, the cost of living outstrips the COL. Each year, they sink further into being poor. The Middle Class is all but gone.

In the 60s, we didn't count part time work against the employed listings. You had to have a full time job. Mostly, it was the man that worked and the women weren't counted. The reported employment rate was hovering right around 6 percent. Today, the employment rate is listed right around 5 percent give or take. This is for all men and women. Now, let's remove the part time jobs from the count. All of a sudden we are at about a 25% unemployment rate using the same way it used to be reported even with counting women in the figures. The Unemployment rate during the depression before the CCC and WPA was 24%. What is the difference? We, the Sheep are told we are doing better. The Government is lying out of it's ass to prevent panic. That's the only difference between a recession and a depression.

If you are doing better, good for you but the majority of the country is slowly slipping.



And don't bother screaming, "Cite, Cite, Cite" this has already been covered over and over. Each and every point. And that generates more "Jobs" but less taxable income. In otherwords, deficits grow.

Now, lets add some facts to you little fantasy...https://www.advisorperspectives.com...the-ratio-of-part-time-employed-february-2019

View attachment 251912

Question!

Reading your link does not tell us whether the 35 hour cutoff to be considered full time must be achieved in a single job. I ask because I know a number of people with two jobs.

Two part time jobs do not equal a full time job.


Sent from my iPhone using USMessageBoard.com

Your link does not say that anywhere, it specifies only 35 hours or more per week.

 

[Dragonlady]

Wasn't any big deal to you moonbat asswipes when eight years of deficits under Oboingo doubled the federal debt, so why does it matter now?

Try reading Economics for Idiots and answer your own damn question.

 

[justoffal]

Wasn't any big deal to you moonbat asswipes when eight years of deficits under Oboingo doubled the federal debt, so why does it matter now?

The debt increase is at least fifty percent prior administration policy that is still in effect. What these dishonest and mal-informed partisan fucks refuse to see is that we are finally spending on economic growth and it's just getting started....rather than constantly committing to improbable and unreachable insanity like 70 Trillion for the GND......

JO

 

[Timmy]

Hmmm. Looks like we need more tax cuts to fix this !

 

[justoffal]

Wasn't any big deal to you moonbat asswipes when eight years of deficits under Oboingo doubled the federal debt, so why does it matter now?

Try reading Economics for Idiots and answer your own damn question.

No problem I can do that....

The reason it matters now is because you're not in the driver's seat....it certainly isn't because you know anything at all about what you're talking about....cuz lemme tell ya..
You don't.

Jo

 

[AzogtheDefiler]

Democrats and Republicans don't want to deal with the deficit, just point the finger. Administration by administration, it has been one disaster after another.

Let's take a fast look. Okay, more jobs are being done. It shows in the unemployment roles. Now, here is the truth.

Only those actively looking are counted on that role. The ones that just gave up and went home are no longer counted.

Yes, there are more jobs. But it's not necessarily being done by more people. We have had a slight decrease in full time employment but a huge increase in part time employment. Walmat used to have 60% full time and 40% part time workers. But right around 2010, they changed to 40 full time and 60 part time. How do I know this? I used to work for that sorry company. Today, the ratio for part time versus full time is even worse in Walmart and many are afraid for their jobs even if they are only working part time. Couples work there so that both of them can have an income equal to a full time job. The part time jobs are counted with the same levy that the full time jobs are on the Employment Listings you keep hearing about doing so well.

More people are working 2 part time jobs or sometimes 3 in a given household.

Those people are also slowly sinking. Even with the minimum wage increases, the cost of living outstrips the COL. Each year, they sink further into being poor. The Middle Class is all but gone.

In the 60s, we didn't count part time work against the employed listings. You had to have a full time job. Mostly, it was the man that worked and the women weren't counted. The reported employment rate was hovering right around 6 percent. Today, the employment rate is listed right around 5 percent give or take. This is for all men and women. Now, let's remove the part time jobs from the count. All of a sudden we are at about a 25% unemployment rate using the same way it used to be reported even with counting women in the figures. The Unemployment rate during the depression before the CCC and WPA was 24%. What is the difference? We, the Sheep are told we are doing better. The Government is lying out of it's ass to prevent panic. That's the only difference between a recession and a depression.

If you are doing better, good for you but the majority of the country is slowly slipping.



And don't bother screaming, "Cite, Cite, Cite" this has already been covered over and over. Each and every point. And that generates more "Jobs" but less taxable income. In otherwords, deficits grow.

Cable TV, Netflix, smart phones, Uber...all cost money and were not around in the 60s life is more expensive and to afford it some have to work more or go without. Cry me a river.

 

[justoffal]

Hmmm. Looks like we need more tax cuts to fix this !

Nope we can fix it the Maduro way. 101% tax on everything including flush handles and cow farts...

We'll be golden! Trust me!

Jo

 

[Timmy]

Partisan aside .

Massive tax cut for wealthy and big biz during booming economic times is a stupid idea .

When times are good, that’s when you can work in debt . Money is coming in and the demand for gov services drops. It’s the time to cut costs and pay down debt .

 

[Timmy]

Hmmm. Looks like we need more tax cuts to fix this !

Nope we can fix it the Maduro way. 101% tax on everything including flush handles and cow farts...

We'll be golden! Trust me!

Jo

What’s your solution ?

 

[debbiedowner]

The budget deficit keeps getting bigger and bigger as tax revenues continue to fall.

The USA is in a bad place if a recession hits because the government's capability to use fiscal policy to defend against a recession will be severely impaired by the huge budget deficits.

The government debt keeps accumulating and it won't be long before the interest payments are so high the debt is self-sustaining with positive feedback causing acceleration of debt accumulation.

Trump has trashed world trade with his trade war which could have further negative consequences.

Bloomberg - Are you a robot?

U.S. Posts Largest-Ever Monthly Budget Deficit in February
By Katia Dmitrieva , Laura Davison , and Saleha Mohsin
March 23, 2019, 1:00 AM GMT+7 Updated on March 23, 2019, 3:04 AM GMT+7

Shortfall rises 40% to $544b in first 5 months of fiscal year
Corporate, income taxes decline as tariff revenue climbs

The U.S. posted its biggest monthly budget deficit on record last month, amid a 20 percent drop in corporate tax revenue and a boost in spending so far this fiscal year.
The budget gap widened to $234 billion in February, compared with a fiscal gap of $215.2 billion a year earlier. That gap surpassed the previous monthly record of $231.7 billion set seven years ago, according to data compiled by Bloomberg.
February’s shortfall helped push the deficit for the first five months of the government’s fiscal year to $544.2 billion, up almost 40 percent from the same period the previous year, the Treasury Department said in its monthly budget report Friday. The release was delayed a week by the government shutdown earlier this year.
The U.S. posts its biggest monthly budget deficit on record
Receipts dipped less than 1 percent to $1.3 trillion in the October-February period from the previous year, while spending accelerated 9 percent to $1.8 trillion.
The fiscal shortfall is widening following President Donald Trump’s $1.5 trillion tax-cuts package that’s weighing on receipts and raising concerns about the national debt load, which topped a record $22 trillion last month.
Federal Reserve Chairman Jerome Powell reiterated his concern over the government deficit in a press conference Wednesday, saying that the nation’s growing debt pile needs to be addressed. At the same time, there’s a shift among some economists -- led by proponents of Modern Monetary Theory -- on the dangers of a growing deficit, with low inflation and cheap borrowing costs suggesting there’s room for additional spending.
The budget deficit as a share of gross domestic product is expected to widen to 5.1 percent this year, up from 3.8 percent a year ago, according to projections from the White House Office of Management and Budget. The shortfall is expected to be 4.9 percent of GDP in 2020, and further narrow every year through 2024, according to the estimates.
MMT Bursts From Obscurity Helped by Trump Deficits, ‘AOC Factor’
The Treasury data show tax receipts declined for both corporations and individuals in the five-month period, while revenue from customs duties almost doubled, boosted by income from tariffs imposed by the Trump administration.
The 2017 tax law slashed the corporate tax rate from 35 percent to 21 percent.
Corporations have so far this fiscal year paid $59.2 billion, compared to $73.5 billion at the point in 2018, when the tax law was only partially in effect for some corporations. In 2017, however, the year before the law was enacted, corporations had paid $87.4 billion at this point in the year.
In a briefing with reporters on Friday before Treasury released the budget data, officials attributed the drop in corporate tax revenues to the front-loading of accelerated expensing and other such items, and reiterated the administration’s view that the cuts would pay off with faster economic growth.
The officials said the administration has been clear the tax cuts would pay for themselves over time, not immediately.
Individual income tax receipts dropped slightly from this point last year, but have risen compared to some years before the tax law. Despite the law cutting tax rates for most people, rising wages and lower unemployment have spurred higher tax revenue.
“It’s not an accident that this economy is doing so well, it comes in no small part from business tax” reductions, economist Stephen Moore, Trump’s pick to be a Fed governor, said in an interview on Bloomberg TV on Friday. “We’ve just got to get the spending” under control but no party is in the mood for that, he added.
Trump’s 2020 election bid is beginning to ramp up and he’s eager to show that his three-pronged economic agenda of tax cuts, deregulation and new trade deals have spurred growth. However, key indicators, such as business investment in equipment and machinery, haven’t expanded greatly despite tax policies prodding companies to spend more. The Federal Reserve this week acknowledged that interest rates could be on hold for “some time” a sign the central bank is cautious about economic growth potential.

No problem Trump is winning.