Tax Revenues Up 5% After Tax Reform

There are two economic models.

The left wants to tax everything and everyone to death for the benefit of "the people". If there's money around, it insists on immediately seizing it to put it to better use.

The right wants to create growth by letting its owners put their money to good use. And it works.

The Congressional Budget Office says that federal revenues in January added up to $362 billion. That's an increase of $18 billion— or 5.2% — from the year before. As a result, the government ran a surplus of $51 billion that month, which is equal to the previous January.

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As the CBO notes, the new payroll withholding scheduled hadn't fully taken effect in January; companies don't have to update their employee tax withholdings until the middle of this month. When that happens, monthly revenues from individual income taxes will likely slip.

But the latest CBO report does show how a growing economy can make up a lot of the difference between the advertised price of a tax cut and the actual impact on revenues.

The same report says that revenues for the first four months of the current fiscal year — which started last October — were $46 billion higher than the same period the year before.

Individual income and payroll taxes, it says, rose by $68 billion. "That change largely reflects increases in wages and salaries," the CBO says.

The government doesn't create wealth and prosperity. People do.

That's why Obama and Elizabeth Warren didn't build that. Trump did.

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