Mainstream Media (MSM) and some of their «smart» journalists were laughing at president Trump when he said he will cut taxes and bring back jobs and money. How in the world is he gonna do that with so much debt, they argued.
Now, we know that president Trump was right. The U.S government receipts increased 7% YoY to 253 billion in October of 2018. Government revenues in the U.S reached an all-time high of 510447 USD Million in April of 2018, and the economy are growing faster and create more jobs than expected. It`s an economic boom.
The U.S income tax revenue climbed from about 1 trillion in 2000 to 1,59 trillion US dollars in 2017, but we can already now see a major shift in the market. The forecast predicts an increase in income tax revenues up to about 2,92 trillion U.S dollars in 2028. Up nearly 100%.
It seems like the booming economy will continue and the forecast predicts an increase in total receipts to reach about 4,39 trillion in 2023.
Obama is often trying to take Trump`s cred for the economic boom, but the difference between Obama and Trump is the deficit. It climbed to $148 billion under Obama while it climbed to «only» $113 in fiscal 2018 under president Trump.
So, the government did better on revenues and deficits under Trump than under Obama`s last year in office. The economy was sluggish under Obama were the federal revenues was barely increasing and the deficit increased.
The real boom in the economy came with Trump`s tax cuts and all his business reforms. The Congress (on both sides) must be held responsible for the increase in deficit as they refuse to bring federal spending under control.
The Republicans like to push down the taxes while the Dems like to keep them high. If the Dems were in charge, the taxes would have remained high on the cost of jobs and wage gains America now is enjoying. Would that be a better solution?
Obama and Bernanke «printed» money after the financial crisis, but the economy was sluggish and the growth was never 2% under Obama. The recovery was very slow but it takes some time to turn the ship around. Obama and Trump should look upon themselves as one team; Team America and that`s red, white and blue.
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Ket Garden
Business, Politics, Finans 