By: Brian Evans
Now that the Trump Tax cuts have had time to take root throughout the American economy, the Congressional Budget Office has reported a record budget in April, which contradicted their original forecast for the Trump Tax Cuts that were passed by Congressional Republicans, but opposed by twelve Fabian-Rino Republicans, and EVERY SINGLE DEMOCRAT! Even the left-leaning allegedly non-partisan Congressional Budget Office was highly critical of the tax cuts, and claimed that their cost to America’s bottom line would be in the trillions of dollars.
Mother Jones, Democrats, and the Mainstream Media made comments like…
“This comes from Table B-3 in the report. In other words, the tax cut doesn’t pay for itself. It doesn’t even partially pay for itself. It does have some positive economic feedback, but not very much, and nowhere near enough to make up for the lost revenue and the increase in interest payments” Mother Jones
” In other words, spending still isn’t the problem. The problem is tax cuts for the rich that slash revenue and increase debt service. Put those together, and even with a modest supply-side economic benefit the tax cut still costs more than the static revenue estimate. Maybe it’s time to finally put the Laffer Curve to rest, boys.” Mother Jones
Now, just a few short weeks later, Mother Jones and other Progressive-Socialists and Anti-Capitalists are scrambling to spin the news, as new information has come to light, and it turns out that President Trump and Congressional Republicans were right, and Mainstream Media along with Democrats were dead wrong!
In fact, the CBO’s new scores reveal that the federal government is looking to take in its biggest ever monthly budget surplus, as the American economy is showing strong signs that it is not only taking off, but is surging off of the charts, and beore the tax cuts have fully had time to take effect in our American economy. All signs that show that supply side economics and the ‘Laffer Curve’ theory does work, despite what Mother Jones and other Socialist leaning, Progressive sites claim.
To better understand what is happening, one must understand supply side economics, and the laffer curve. The theory behind the economic concept called the laffer curve claims that as taxes increase (like during the Obama Administration), tax revenue collected by the government also increases. However, when taxes reach a critical point (past point T*), and American’s paychecks get small enough that they lose the incentive to work as hard, and sometimes not at all. As a result, tax revenue during the Obama years dropped drastically, leaving less government revenue and higher debt. The laffer curve goes even further in showing that when tax rates hit 100% (like under communism), people lose all reasons and will to work. As a result, federal revenue hits rock bottom. (Seen below)
Governments should be trying to hit that sweet spot on the curve (point T*), because that is the exact point where governments are able to collect the maximum amount of tax revenue, while still having the incentive for people to continue working hard.
This brings us back to the Trump and Republican tax cuts. President Trump pushed hard to cut the tax burden on American’s as much as possible, without depriving the government of much-needed money to finance the military, infrastructure, schools, police, and other services that are needed to keep American society functioning well. It was not an easy task, since many Congressional and Senate leaders follow Fabian Economics models that are identical to the Progressive-Socialist models. They just take a different path to get to a socialist state. Therefore, Fabian-Economic Rino Elitists in the Party understandably sided with the Progressive-Socialist Democrats, since they both belive that Socialism, and not Capitalism, is the ideal economic model for America.
However, the Laffer Curve is just one aspect of conservative supply side economics model. Supply side economics argues that economic growth is affected greatest by not simply lowering taxes, but also decreasing regulations. That is because regulations, like the massive growth of burdensome regulations that were enacted under the Obama Administration, tend to choke out business, drive businesses overseas, and disincentivize the expansion and growth of businesses and manufacturing. In fact, the last time the economy grew with such vigor was under President Reagan’s Administration. Ironically, it was Reagan and his chief economist, Robert Mundell who started supply-side economics. Since Reagan, every subsequent Republican and Democrat Presidential Administration has countered Reagan’s growth and expansion of the United States economy by increasing taxes on American’s, and slapping massive regulations on businesses, corporations and the manufacturing sector. That is until President Trump and his Administration took control of the economy in 2017.
President Trump has slashed regulations across the board, freed up manufacturers to expand, oversaw the largest reduction of taxes on American’s in history, has been, and continues to renegotiate trade deals between America and China, Mexico, Canada, South Korea, Japan, other numerous other countries around the globe. He is signing trade deals that are bringing manufacturers back to the United States, stifling currency manipulation perpetuated on the United States by countries like China, and re-leveling the playing field for American businesses and corporations.
As a result, under the leadership of President Trump, the United States government collected a record $515 billion, while spending $297 billion, for a total monthly surplus of $218 billion in April alone. The CBO says that they will have a better idea of what is behind the surge when more information rolls in. The CBO said…
“Those payments were mostly related to economic activity in 2017 and may reflect stronger-than-expected income growth in that year,” the analysts said in their monthly budget review. “Part of the strength in receipts also may reflect larger-than-anticipated payments for economic activity in 2018. The reasons for the added revenues will be better understood as more detailed information becomes available later this year.”
However, it doesn’t take a rocket scientist to see the writing on the wall. American’s have more disposable money; therefore, more money to spend.
Food stamp enrollment dropped by more than 1.3 million in just two months, according to the latest data from the U.S. Department of Agriculture (USDA). In fact, the USDA data reveals that the number of participants in the Supplemental Nutrition Assistance Program (SNAP) plunged from 41,374,348 in December 2017 to 40,032,131 in February 2018—a decrease of 1,342,217.
The Food stamp enrollment has plummeted by more than 1/2 million for the second month in a row in fiscal year (FY) 2018; last month’s data showed that 608,039 discontinued their participation in SNAP. Below, the figures show USDA’s breakdown of food stamp usage since October of last year:
October to November- 4,015,110
November to December- 358,242
December to January- 734,178
January to February- 608,039
Now, to further perpetuate America’s expanding economy, President Trump wants to pass a $15 Billion dollar ‘rescission’ package. He challenged lawmakers to cut unspent money that has been simply sitting in accounts, unable to be used, across the government. So far, President Trump has proposed 38 cuts including…
- $4.3 billion in vehicle technology loan program
- $800 million from a Obamacare payment pilot program
- $200 million earmarked by the Obama Administration for the Ebola outbreak, which is no longer a problem.
- $2 billion contingency fund
- $7 billion from Children’s Health Insurance Program
Democrats immediately began attacking the spending cuts as an attack on lower and middle-income children throughout the United States. Democrat Chuck Schumer said…
“Let’s be honest about what this is: President Trump and Republicans in Congress are looking to tear apart the bipartisan Children’s Health Insurance Program (CHIP), hurting middle-class families and low-income children, to appease the most conservative special interests and feel better about blowing up the deficit to give the wealthiest few and biggest corporations huge tax breaks”