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Trumps tax cuts resulting in a booming economy are working perfectly generating more revenue for the federal government. the problem is we have a spending problem.
Trumps tax cuts resulting in a booming economy are working perfectly generating more revenue for the federal government. the problem is we have a spending problem.
Well, yes, not that surprising. There wasn't much of a tax cut on the individual side of things. Rates were dropped but more income was considered taxable. For quite a few people such as myself that meant a tax increase. Mine wasn't significant because I don't have a mortgage deduction so the SALT caps have a less pronounced effect on me than someone with a higher income with a mortgage deduction.
The corporate tax rate going from 31 to 25% was much more significant than the rate cuts on the individual side, although there again the tax basis is just as important.
At the end of the day, however, however you slice it the facts are the facts. The increased taxation on individuals is not enough to offset the decreased taxation of corporations and federal revenue was down and quarterly estimate seem to point that towards an even sharper decline for this year than last year.
I'm actually not opposed to the corporate tax cuts. Prior to the tax cuts the rate was absurdly high. Tax basis off-set that to some degree but the corporate rate was still very, very high. Haven't really dug into it but I don't think the adjustments to tax shelters were addressed for corporate side the way it was for individual side. E.g., individual side they cut rates slightly but taxed more income by limiting tax shelters. On the corporate income side I think it was more that they just cut tax rates substantially (needed) but didn't address that there's so many tax shelters on the corporate side of things that corporations only pay taxes on about half of their profits. I haven't seen any estimates of effective corporate tax rate, but if the basis wasn't adjusted with the tax cuts effective tax rate should be down around 10%. That's not all that absurdly low but definitely would move US corporate taxation towards the lower half of effective tax rates from near the very top.
Then you combine that with spending like a drunken sailor and it's bad news.
And never mind that is the House of Representatives, run by Democrats, that is in charge of all spending and money.
President Trump cannot spend a nickel unless the House of Representatives tell him he can do so.
Here's the deal from the Democrat party standpoint, spend lots and lots of money and blame Trump for the deficit or don't go with Trump on cuts and then blame him for the government shutdown.
Never read Rand, have no knowledge of how she died, what her financials were, whether she collected govt welfare, but your thinly veiled contempt for the less fortunate is noted.
Spare us the contrived humility, you’re not fooling anyone.
Good grief, why would anyone want the federal govt to have more private money? To run all its exceptional services? To continue its wars? To make more laws to use against you?
Cut taxes, cut spending, enjoy freedom, live a life without politicians and their government.
I immediately thought the same thing. Even if true, why celebrate such a thing?
More people paying individual taxes, the tax cuts were not a cut for many middle income people.
While Corp. taxes collected were lower..
Quote:
In fiscal 2019, the federal government collected $230,245,000,000 in corporation income taxes, which was up $25,512,000,000 from the $204,733,000,000 in corporation income taxes the Treasury collected in fiscal 2018.
Got bad news for you ignorant (meaning: don't read an article) folks:
Individual receipts: up 0.3%
Corp Receipts: up 12%
personal income, up 2.9% for the fiscal year.
corporate profits, up 3.4% for the fiscal year.
I honestly thought that maybe corporate profits shot up, like maybe 30% from economic activity, and that's why the tax number rose. That was the skeptic in me.
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