Sorry Democratic Socialists, you are still pushing poison

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cassowary
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Re: Tax cuts did not reduce revenue

Post by cassowary » Sun Aug 19, 2018 1:49 am

Milo wrote:
Sun Aug 12, 2018 12:46 pm
cassowary wrote:
Sat Aug 11, 2018 9:30 am
Tax revenues were higher
Perhaps you’ve read that the federal budget deficit is rising again, and that’s true. But what you probably haven’t heard is that the main reason is spending, not falling revenue from tax cuts.

The Congressional Budget Office released its budget summary for July this week, and the deficit for the first 10 months of fiscal 2018 reached $682 billion, up $116 billion from a year earlier. Federal spending increased by $143 billion for all the usual reasons—especially Medicare, Medicaid and Social Security.

But revenues were higher as well—up $26 billion. Corporate income taxes were down substantially as expected in the wake of the tax reform that cut the corporate rate and added 100% expensing. But individual income taxes increased by $104 billion, or 7.9%, despite the cut in individual tax rates. How could that be? CBO says one reason is that withholding from paychecks increased by $32 billion, which “largely reflects increases in wages and salaries.” In other words, a faster-growing economy employed more people who made more money.

Individual tax receipts were down a bit in July but that was more than offset by record revenue in April, the biggest month for tax receipts. Meanwhile, don’t believe everything you read about tax reform and deficits. Higher spending is the real problem.
The tax cut did not decrease revenue.

Medicare, Medicaid and Social Security need to be cut. The welfare state needs to be reined in before it ruins the country.
Some of these tax cuts have not even been implemented yet and when they are, they will often have little to no effect on cash in hand until next year, when people have to pay their taxes or not.

https://smartasset.com/taxes/when-the-n ... ake-effect

Furthermore, the US fiscal begins in October, not January, hence the period of "10 months of fiscal 2018" quoted above. Trump signed these changes into effect in December: the 3rd month of the fiscal year.

https://en.wikipedia.org/wiki/2018_Unit ... ral_budget

At best, we are at a wait and see stage of the efficacy of these changes. But the WSJ long ago abandoned any pretense of being apolitical.
Milo,

The WSJ was referring to the tax revenue that will be generated from this year. So while the money will not be collected till next year, the expected revenue from the new tax regime shows that tax revenue will increase. Here it is again:
But revenues were higher as well—up $26 billion. Corporate income taxes were down substantially as expected in the wake of the tax reform that cut the corporate rate and added 100% expensing. But individual income taxes increased by $104 billion, or 7.9%, despite the cut in individual tax rates. How could that be? CBO says one reason is that withholding from paychecks increased by $32 billion, which “largely reflects increases in wages and salaries.” In other words, a faster-growing economy employed more people who made more money.

Individual tax receipts were down a bit in July but that was more than offset by record revenue in April, the biggest month for tax receipts. Meanwhile, don’t believe everything you read about tax reform and deficits. Higher spending is the real problem.
So the article was clearly talking about this year's expected tax revenue which is after the tax cuts which comes in effect since Jan 1 2018. They are not talking about revenue to be collected on 2017 income as you appear to be thinking.

neverfail
Posts: 2377
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Re: Tax cuts did not reduce revenue

Post by neverfail » Sun Aug 19, 2018 4:16 am

cassowary wrote:
Sun Aug 19, 2018 1:49 am

Milo,

The WSJ was referring to the tax revenue that will be generated from this year. So while the money will not be collected till next year, the expected revenue from the new tax regime shows that tax revenue will increase. Here it is again:
But revenues were higher as well—up $26 billion. Corporate income taxes were down substantially as expected in the wake of the tax reform that cut the corporate rate and added 100% expensing. But individual income taxes increased by $104 billion, or 7.9%, despite the cut in individual tax rates. How could that be? CBO says one reason is that withholding from paychecks increased by $32 billion, which “largely reflects increases in wages and salaries.” In other words, a faster-growing economy employed more people who made more money.

Individual tax receipts were down a bit in July but that was more than offset by record revenue in April, the biggest month for tax receipts. Meanwhile, don’t believe everything you read about tax reform and deficits. Higher spending is the real problem.
So the article was clearly talking about this year's expected tax revenue which is after the tax cuts which comes in effect since Jan 1 2018. They are not talking about revenue to be collected on 2017 income as you appear to be thinking.
He would not own up to it in public: but Trump should be very grateful to his predecessor in office for having coaxed the US economy back from the catastrophic 2007-08 GFC plunge into the worst recession since the 1930's back to prosperity. It has given the Trump crow that "it is my tax cuts that did it" a superficial aura of PR credibility ro titillate those with short memories. :)

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cassowary
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Re: Tax cuts did not reduce revenue

Post by cassowary » Sun Aug 19, 2018 6:46 am

neverfail wrote:
Sun Aug 19, 2018 4:16 am
cassowary wrote:
Sun Aug 19, 2018 1:49 am

Milo,

The WSJ was referring to the tax revenue that will be generated from this year. So while the money will not be collected till next year, the expected revenue from the new tax regime shows that tax revenue will increase. Here it is again:
But revenues were higher as well—up $26 billion. Corporate income taxes were down substantially as expected in the wake of the tax reform that cut the corporate rate and added 100% expensing. But individual income taxes increased by $104 billion, or 7.9%, despite the cut in individual tax rates. How could that be? CBO says one reason is that withholding from paychecks increased by $32 billion, which “largely reflects increases in wages and salaries.” In other words, a faster-growing economy employed more people who made more money.

Individual tax receipts were down a bit in July but that was more than offset by record revenue in April, the biggest month for tax receipts. Meanwhile, don’t believe everything you read about tax reform and deficits. Higher spending is the real problem.
So the article was clearly talking about this year's expected tax revenue which is after the tax cuts which comes in effect since Jan 1 2018. They are not talking about revenue to be collected on 2017 income as you appear to be thinking.
He would not own up to it in public: but Trump should be very grateful to his predecessor in office for having coaxed the US economy back from the catastrophic 2007-08 GFC plunge into the worst recession since the 1930's back to prosperity. It has given the Trump crow that "it is my tax cuts that did it" a superficial aura of PR credibility ro titillate those with short memories. :)
Nah. oBUMa's policies resulted in the weakest recovery after WWII. He did the opposite of Trump. Tax increases and more regulation. It can't be that both are good for the economy. One is right and the other wrong. Obviously, Trump is right and oBUMa is wrong. Now the Republicans must do the right thing and cut spending.

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SteveFoerster
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Re: Tax cuts did not reduce revenue

Post by SteveFoerster » Mon Aug 20, 2018 6:24 pm

neverfail wrote:
Sun Aug 19, 2018 4:16 am
cassowary wrote:
Sun Aug 19, 2018 1:49 am

Milo,

The WSJ was referring to the tax revenue that will be generated from this year. So while the money will not be collected till next year, the expected revenue from the new tax regime shows that tax revenue will increase. Here it is again:
But revenues were higher as well—up $26 billion. Corporate income taxes were down substantially as expected in the wake of the tax reform that cut the corporate rate and added 100% expensing. But individual income taxes increased by $104 billion, or 7.9%, despite the cut in individual tax rates. How could that be? CBO says one reason is that withholding from paychecks increased by $32 billion, which “largely reflects increases in wages and salaries.” In other words, a faster-growing economy employed more people who made more money.

Individual tax receipts were down a bit in July but that was more than offset by record revenue in April, the biggest month for tax receipts. Meanwhile, don’t believe everything you read about tax reform and deficits. Higher spending is the real problem.
So the article was clearly talking about this year's expected tax revenue which is after the tax cuts which comes in effect since Jan 1 2018. They are not talking about revenue to be collected on 2017 income as you appear to be thinking.
He would not own up to it in public: but Trump should be very grateful to his predecessor in office for having coaxed the US economy back from the catastrophic 2007-08 GFC plunge into the worst recession since the 1930's back to prosperity. It has given the Trump crow that "it is my tax cuts that did it" a superficial aura of PR credibility ro titillate those with short memories. :)
Speaking of short memories: presidents of the United States do not control the economy, whether it's one you like or one you dislike.
Writer, technologist, educator, gadfly.
President of New World University: http://newworld.ac

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Milo
Posts: 1333
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Re: Tax cuts did not reduce revenue

Post by Milo » Wed Aug 22, 2018 12:19 pm

cassowary wrote:
Sun Aug 19, 2018 1:49 am
Milo wrote:
Sun Aug 12, 2018 12:46 pm
cassowary wrote:
Sat Aug 11, 2018 9:30 am
Tax revenues were higher
Perhaps you’ve read that the federal budget deficit is rising again, and that’s true. But what you probably haven’t heard is that the main reason is spending, not falling revenue from tax cuts.

The Congressional Budget Office released its budget summary for July this week, and the deficit for the first 10 months of fiscal 2018 reached $682 billion, up $116 billion from a year earlier. Federal spending increased by $143 billion for all the usual reasons—especially Medicare, Medicaid and Social Security.

But revenues were higher as well—up $26 billion. Corporate income taxes were down substantially as expected in the wake of the tax reform that cut the corporate rate and added 100% expensing. But individual income taxes increased by $104 billion, or 7.9%, despite the cut in individual tax rates. How could that be? CBO says one reason is that withholding from paychecks increased by $32 billion, which “largely reflects increases in wages and salaries.” In other words, a faster-growing economy employed more people who made more money.

Individual tax receipts were down a bit in July but that was more than offset by record revenue in April, the biggest month for tax receipts. Meanwhile, don’t believe everything you read about tax reform and deficits. Higher spending is the real problem.
The tax cut did not decrease revenue.

Medicare, Medicaid and Social Security need to be cut. The welfare state needs to be reined in before it ruins the country.
Some of these tax cuts have not even been implemented yet and when they are, they will often have little to no effect on cash in hand until next year, when people have to pay their taxes or not.

https://smartasset.com/taxes/when-the-n ... ake-effect

Furthermore, the US fiscal begins in October, not January, hence the period of "10 months of fiscal 2018" quoted above. Trump signed these changes into effect in December: the 3rd month of the fiscal year.

https://en.wikipedia.org/wiki/2018_Unit ... ral_budget

At best, we are at a wait and see stage of the efficacy of these changes. But the WSJ long ago abandoned any pretense of being apolitical.
Milo,

The WSJ was referring to the tax revenue that will be generated from this year. So while the money will not be collected till next year, the expected revenue from the new tax regime shows that tax revenue will increase. Here it is again:
But revenues were higher as well—up $26 billion. Corporate income taxes were down substantially as expected in the wake of the tax reform that cut the corporate rate and added 100% expensing. But individual income taxes increased by $104 billion, or 7.9%, despite the cut in individual tax rates. How could that be? CBO says one reason is that withholding from paychecks increased by $32 billion, which “largely reflects increases in wages and salaries.” In other words, a faster-growing economy employed more people who made more money.

Individual tax receipts were down a bit in July but that was more than offset by record revenue in April, the biggest month for tax receipts. Meanwhile, don’t believe everything you read about tax reform and deficits. Higher spending is the real problem.
So the article was clearly talking about this year's expected tax revenue which is after the tax cuts which comes in effect since Jan 1 2018. They are not talking about revenue to be collected on 2017 income as you appear to be thinking.
How do you know "this year" means calendar and not fiscal?

Because you want it to isn't good enough.

It would be very strange for a financial article to refer to an institution's finances in terms of the calendar year when that does not match their fiscal, unless said article is only concerned with fiddling the numbers to match an agenda.

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cassowary
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Re: Sorry Democratic Socialists, you are still pushing poison

Post by cassowary » Wed Aug 22, 2018 5:32 pm

Since corporate taxes were down, it was clear the article is talking about the results of Trump’s tax cuts. But this was more than made up for bu the higher income tax revenues. So you got a surplus. This proves that the tax cuts increased tax revenues.

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