With all the endless cable news talk about vital issues like porn star lawsuits and, of course, “Russia, Russia, Russia,” you might not have heard this minor story: April was the best month for the federal budget in history.
The April 15th tax haul came in, and thanks to a surging economy and Americans earning more money, the Congressional Budget Office reports that the government took in $515 billion and spent $297 billion. That left a record $218 billion monthly surplus. It broke the previous record of $190 billion in 2001, and was $40 billion more than “experts” predicted (the same economic experts who are always as surprised as rabbits in car headlights by whatever the economy actually does.)
Hey, wait! I thought that tax cut was going to lead to fiscal Armageddon?! Well, it turns out that people are paying more taxes because they now have higher incomes. Weird how that worked out, huh?
President Trump got tax rates lower, which is boosting economic growth and personal income, which is increasing tax revenues, which is exactly what the “discredited” supply side economists predicted. Now, he has an even bigger challenge: get Congress to stop spending money so fast that they need to bring in over half a trillion dollars every month just to stay in the black.
That may be a difficult mission, but I can make one prediction with absolute certainty: if the voters give the House, with its budget-making and spending power, back to the Democrats and Nancy Pelosi, it will be a Mission Impossible.
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