CBO Announces Record Surplus For April Even After Tax Cuts

Myths advanced by the liberal left are constantly being refuted. Remember, “We can’t drill our way out of it.”? Liberals claimed that by expanding drilling we could not lower the price of oil.

Common sense tells us that was false. One economic theory which has always been true is the law of supply and demand. When the demand is lower than the supply, the p0rice goes down. When demand exceeds supply, the price goes up. How about increasing the number of guns make the number of violent attacks go up. During the Obama years, private gun ownership increased dramatically but at the same time, violent crimes decreased.

President Trump has just put another liberal talking point to bed without any supper. Tax cuts makes the debt increase. Trump’s tax cuts took place on January 1st of 2018 but in the month of May, the US had a 218 billion dollar surplus. Now, it is true that the US almost always runs a surplus in April, 218 billion set a whole new record.

The previous record was 190 billion in 2001. Experts were expecting a surplus of 40 billion dollars less than what we did achieve. This despite the fact that spending was up 297 billion more than a year ago, thanks in a large part to the Republican cave to the Democrats that increase spending in fiscal 2018 by 1.3 trillion dollars. Imagine what the surplus could have been if Republicans had been fiscally prudent.

Now if we can just elect a bunch of conservatives who want to hold the line on spending, we could really take advantage of the increased financial upwardly mobile US economy and use the surplus to pay down the deficit. We may not be able to lower it significantly, but if we are not adding to the deficit, that in itself would be a tremendous help.

Part of the CBO report reads:

Estimated Surplus in April 2018: $218 Billion

The federal government realized a surplus of $218 billion in April 2018, CBO estimates—$35 billion larger than the surplus in April 2017.

CBO estimates that receipts in April 2018 totaled $515 billion—$59 billion (or 13 percent) more than those in the same month last year. Individual income and payroll taxes rose by $73 billion (or 20 percent), on net. Nonwithheld payments for those taxes, largely final payments of 2017 taxes, rose by $60 billion. Withholding of individual income and payroll taxes rose by $7 billion (or 4 percent). Withheld taxes rose both because wages and salaries were higher and because April 2018 had one more business day than April 2017. However, those factors were partially offset because the share of wages withheld for taxes was lower, CBO estimates, reflecting the new withholding tables issued in January. Corporate income tax payments declined by $14 billion (or 24 percent).