Liberals are furious that the impact was created by President Trump.
For many years, the United States government has spent money hand over fist, spending more money than they take in. Even on good months, the federal government barely turns a profit.
But now, under the leadership of President Donald J. Trump, the U.S. government has set a historic record, receiving its largest monthly surplus EVER, according to the accounting of the non-partisan Congressional Budget Office. They said that the growth in income in April this year is due to 2017 activity, resulting in a record-breaking $218 BILLION budget surplus. After democrats spent the last year and a half fighting the President on everything, they can’t give the credit to Obama for this increase in tax income.
According to the CBO report, the United States government spent $297 billion last month, but still managed to end the month with a surplus of $218 billion, shattering the previous record of a $190 billion surplus in 2001, during the George W. Bush administration.
In other words, last month the federal government took in $515 billion in taxes, and after allotting and spending all money they were legally obligated to spend, they were left with a surplus of $218 billion.
The CBO was surprised by this outcome, according to sources within the agency, as they forecast that the surplus would be $40 billion less at least, meaning that the government would have a surplus of, at most, $178 billion.
That would put them well under the record set in 2001.
The CBO’s expert analysts suggested that the shockingly high surplus was due to “stronger than expected” economic growth in 2017, and that the excess income meant that the American people had more taxable income in President Trump’s first year in office than they did during the past 17 years.
In their report, they tied the payments to an increase in economic activity in 2017.
The report also said that the surplus suggested that there were “larger than anticipated” payments for economic activity (in other words, business taxes) in the first quarter of 2018.
The analysts stated that they will be able to better understand the reasons behind the increase in payments as the year goes on and more monthly and quarterly data becomes available for analysis.
To summarize, under President Trump’s economic plans, the United States government received a record-breaking amount of tax payments.
This is interesting, because the Democrat Party and its members fought as hard as they could against literally every economic decision that the current administration attempted to make.
When Donald Trump signaled his support for a tax plan that limited SALT (state and local tax deductions) deductions to $10,000 a year, democrats threw an absolute fit.
When the President pushed to lower America’s corporate tax policy so that the United States could compete with the rest of the world, they complained, rather than admitting that the United States’ 35 percent statutory tax rate on corporations was the highest in the developed world and the third highest listed tax rate on the planet.
Leftists bemoaned income tax cuts, saying that they did nothing for the poor while saving money for the rich, ignoring that it is the wealthy, not the poor, who create businesses and jobs, and who pay the majority of the nation’s income tax burden.
While the CBO said that last month’s budget numbers are positive news, that doesn’t mean that the budget deficit is magically fixed.
However, there are some good signs to see in the new budget numbers. Perhaps most importantly, after eight years of Barack Obama’s anti-business, anti-corporate stances, President Donald Trump is bringing business back to the United States.
As NAFTA renegotiations continue with Canada and Mexico, the United States has the opportunity to reclaim more business. Currently, Canada and Mexico’s negotiation teams have agreed to enforce American tariffs on foreign businesses, meaning Asian and European businesses can no longer open a factory in Mexico or Canada and assemble goods there while enjoying the benefits of the NAFTA agreement.
If that is the case, then those businesses will be left with only two choices: paying the appropriate tariffs to bring their products to the United States (and still paying shipping charges from Canada or Mexico to the U.S.), or building facilities in-country to produce or assemble goods for the American market.
It will take time to repair the damage done to the American economy by eight years of anti-business leadership in Washington D.C. However, the news of high incoming payments to the federal government is welcome to those who are hoping that the United States will be able to turn around its economy, and perhaps even its debt.
It seems that, despite the complaints of the Democrat Party, President Trump is precisely the person to fix the economy, and to set America’s books in order. Hopefully, they’ll get on board after the 2018 elections and work with him, rather than fighting him at every turn.