WASHINGTON—Corporations taking advantage of new, lower tax rates reduced their payments to the federal government last month.

The Treasury Department on Thursday said government receipts fell 7% in June compared with the same month a year earlier, including a 33% drop in gross corporate taxes. Individual withheld and payroll taxes were down 5% from June 2017, while non-withheld individual taxes rose by 7%.

Even though revenues fell, the budget deficit narrowed to $74.86 billion in June, compared with $90.23 billion in June 2017, due to a 9% drop in government outlays. The spending decline largely reflected some accounting shifts and not actual spending changes. For instance, the Education Department revised estimates for the net costs of past loans and loan guarantees, according to a Congressional Budget Office analysis.

More broadly, the federal deficit is swelling as government spending outpaces revenues. The budget gap totaled $607.1 billion in the first nine months of the 2018 fiscal year, 16% larger than the same point a year earlier. So far in the current fiscal year, which will end Sept. 30, total spending rose 4% compared with the same period a year earlier and total revenues rose 1%.

Posted by bad_luck on 10/22/2018 9:58:00 PM (view original):

Posted by DoctorKz on 10/22/2018 9:11:00 PM (view original):
Obama inherited a struggling economy from Bush, much to do with the idiots from the Finance and Banking Committees, namely Barney Frank and Chris Dodd, who had their pockets lined from Freddie and Fannie, which were neck deep in the bad paper that resulted in the financial mess in Bush's 2nd term. Obama's economy struggled for much of his 2 terms. It wasn't until Trump was elected that investors began to put money back into the economy, betting on lower taxes and relaxed regulations. Announcement of tax cuts further inspired investment. The economy moved forward despite Obama's efforts, not because of them. People held back due to the high taxes, and stifling regulations on business and investment. The wealthy made money under Obama, but the rest of us saw slow job growth and stagnant wages. Obama can take credit for avoiding a complete capsizing of our economy. Zero interest rates, no significant wage and job growth were the best he could do. He even said it was the best it could be, that Trump would do no better. Many predicted Trump would give us a recession. You have to give Trump his due. Understand that forcing merchants to raise wages in a struggling economy brings layoffs. See Portland Maine as an example. When an economy thrives, jobs are scarce, employers fight over talent, bringing about wage growth. We are seeing that now. This is the difference between artificially stimulating an economy and one that brings about real growth.

What is lacking at this point is getting spending under control to achieve a balanced budget, reducing the debt, and addressing the future insolvency of Social Security.

As I have said before, tax revenue is higher now than before the tax cuts. More are paying in. Fewer are needing government assistance. But you can't eliminate deficits until spending is less than what's coming in. Closing some corporate tax loopholes should be included. Fatcats can afford to pay their fair share. They are getting plenty of incentive without them. I really think Trump will get this moving in the right direction as well...

Tax revenue is not higher.

Not yet you retard. Give him until 2020 and see.

The deficit is due to increased spending, not the tax cuts.

Posted by DoctorKz on 10/22/2018 10:06:00 PM (view original):
The deficit is due to increased spending, not the tax cuts.

Correct. Trump is forcing each dept to cut 5%. Running country like a corporation. Finally. Needs to address entitlements.

I like the lower taxes, and here is why. For decades we saw jobs shift out of country. We couldn't compete with a 15% corporate rate in Ireland for example.

We have money being spent here. Job creation here. Wages on the rise.

I have no problem with pinching those wealthy business owners with paying their taxes, eliminating the loopholes. Just keep it competitive. Give them enough reasons to keep their money flowing here...

Trump is no K Street fan. Those bastards have too much power and influence. They are kicking and ******** as he threatens the Swamp, their playground...he won't get everything gutted, but leveling the playing field will be enough.

I am a Saint Louis resident. Many of you got acquainted with Ferguson. It sits in North County, nw of downtown. Decades ago, it was a solid middle income area. There was a Ford plant, and the Corvette plant was nearby. Those plants closed, many good paying jobs were lost. Decay set in quickly.

Trump understands how crucial manufacturing is to our economy. It is the difference between prosperity and the need for government assistance. We need as many blue collar jobs as possible. Getting and keeping investment here is paramount.

Posted by cccp1014 on 10/22/2018 10:04:00 PM (view original):

Posted by bad_luck on 10/22/2018 7:24:00 PM (view original):

Posted by cccp1014 on 10/22/2018 2:46:00 PM (view original):

Posted by bad_luck on 10/22/2018 2:38:00 PM (view original):
This is like blaming Obama for the recession. The recovery was lead by Obama. Everything good happening under Trump now is because Obama left the economy in great shape. Raising rates is not always a good thing.

#1) Nope. The recession was Bush's fault.
#2) Yes, it was but he spent to get us out of it.
#3) Everything good? Tax cuts were Obama's idea?
#4) If it were in great shape then the Fed would have raised rates at least once during his presidency. Did you miss the manufacturing jobs bullett? Was not in great shape.
#5) No. But it shows long term confidence more often than not. There was zero long term confidence according to the Fed during BHO's entire presidency.

This is really not difficult. Someone with just a basic understanding of macro-economics should be able to understand it. And you work at a bank so you should have a basic understanding of macro.

You have to spend when you are in a demand driven recession. The more the better. Why? Because normal consumers (businesses and people) aren't spending. At least not at a rate that will restart the economy. If you don't spend, you get a death spiral. This is not partisan. This is not liberal. This is, up until Obama took office, something that people on both sides of the aisle acknowledged. GWB put a stimulus package into place for this exact reason.

Regarding Trump's tax plan, there is pretty significant argument that his tax plan didn't do much for the economy because it was directed mostly towards people who already have a lot of money. So their spending habits didn't change.

Why would the fed have raised rates? The fed only raises rates if it is concerned that inflation might go up too fast. It's used to pump the brakes on an economy that is over-heating.

Trump or not, I wouldn't be surprised if we had a recession next year.

You are an idiot. Didn’t need to spend 10trl to boost the economy and Trumps plan significantly lowered the CORPORATE tax rate you f$ck head. Halting corporate inversions and allowing them to hire more, spend on CAPEX and R & D. I ve seen demand go way up since his election and business confidence at a high I have not seen since 1998. You dumbass.

Obama should have actually spent more. The economy would have grown faster.

Yes, Trump lowered the corporate rate and the income rates and changed the estate tax threshold.

Not sure how halting inversions allows businesses to spend more. You’ll have to explain that one.

Your anecdotal evidence is worth to me about as much as your dad’s dumbass vote for Trump. Go tell your two black friends about the confidence you’ve seen.

Posted by DoctorKz on 10/22/2018 10:05:00 PM (view original):

WASHINGTON—Corporations taking advantage of new, lower tax rates reduced their payments to the federal government last month.

The Treasury Department on Thursday said government receipts fell 7% in June compared with the same month a year earlier, including a 33% drop in gross corporate taxes. Individual withheld and payroll taxes were down 5% from June 2017, while non-withheld individual taxes rose by 7%.

Even though revenues fell, the budget deficit narrowed to $74.86 billion in June, compared with $90.23 billion in June 2017, due to a 9% drop in government outlays. The spending decline largely reflected some accounting shifts and not actual spending changes. For instance, the Education Department revised estimates for the net costs of past loans and loan guarantees, according to a Congressional Budget Office analysis.

More broadly, the federal deficit is swelling as government spending outpaces revenues. The budget gap totaled $607.1 billion in the first nine months of the 2018 fiscal year, 16% larger than the same point a year earlier. So far in the current fiscal year, which will end Sept. 30, total spending rose 4% compared with the same period a year earlier and total revenues rose 1%.

A large chunk of the fiscal year was pre-cut.

If you measure using the time since the cut went into effect, revenues are down.

Posted by bad_luck on 10/22/2018 10:04:00 PM (view original):

If you look at when the tax bill passed, it’s not clear at all that an increase in tax receipts followed the bill’s passage. Because the Treasury report also includes month-by-month data, it’s possible to drill down to measure trends during more specific time periods.

For the three months of fiscal 2018 prior to the tax cut, individual income tax collections rose by 10.8 percent over the equivalent period from 2017. But the rise for the seven months after the tax cut was 6.7 percent.

And if you look at total tax collections from every category, rather than just individual income taxes, the picture is even worse. During the seven-month period after the tax bill passed, total receipts actually fell slightly compared to the equivalent period in 2017, by about a tenth of a percentage point.

Perhaps the most revealing comparison takes in the May-to-July period, because it excludes the spike in payments in April, when most Americans pay taxes on income generated in 2017, before the tax law was passed. During that period, individual income tax collections fell by about 1 percent compared to 2017.

This.

Posted by cccp1014 on 10/22/2018 10:10:00 PM (view original):

Posted by DoctorKz on 10/22/2018 10:06:00 PM (view original):
The deficit is due to increased spending, not the tax cuts.

Correct. Trump is forcing each dept to cut 5%. Running country like a corporation. Finally. Needs to address entitlements.

He’d have to break his promise not to cut Medicare and Medicaid.

That would be really unpopular. The racists won’t care, so he’ll hold on to his base, but the Obama-Trump voters would be lost.

You can argue for tax rates to be raised. I prefer to see spending reigned in. I am a much bigger fan of private investment than I am of the government doing the spending with taxpayers money...I see government needing less involvement. Not more control of how my money is spent...you will never sell me on wealth redistribution. And everything the government does, every penny it spends, it is a form of taxation. So I choose less, not more. Let the investment capital come from the private sector, spent by the private sector. Keep Uncle Sam out of my wallet...

Posted by bad_luck on 10/22/2018 10:57:00 PM (view original):

Posted by cccp1014 on 10/22/2018 10:10:00 PM (view original):

Posted by DoctorKz on 10/22/2018 10:06:00 PM (view original):
The deficit is due to increased spending, not the tax cuts.

Correct. Trump is forcing each dept to cut 5%. Running country like a corporation. Finally. Needs to address entitlements.

He’d have to break his promise not to cut Medicare and Medicaid.

That would be really unpopular. The racists won’t care, so he’ll hold on to his base, but the Obama-Trump voters would be lost.

Why does it have to involve race?

Why hasn't Twitter suspended Farrakhan's account?

This conversation























































Me.

Entitlement reform will be a heavy lift, regardless of who controls Congress. No President, no Congress want to have to make cuts. Politically it is toxic. But I applaud any of them with the guts to make tough and necessary decisions. So far we haven't seen any of that.

Here's a thought: a revving economy, rids itself of waste, fraud and abuse. Streamlined programs that work, elimination of those that don't work. We do well enough that surpluses make it possible to pay for entitlements while making progress on reducing the debt. Out of reach? Possible for a CEO type to bring it to fruition? Clinton had surpluses, why not The Donald?