(NationalSentinel) Taxes and Spending:Â The U.S. government is heavily in debt, that much is certain, but it’s not because Uncle Sam doesn’t have his hands in our pockets.
Through February, the federal government has collected a record amount of taxes – a record that, by the way, continues to be shattered year-over-year.
The federal government collected a record of approximately $611,318,000,000 in individual income tax revenues through the first five months of fiscal 2017 (Oct. 1, 2016 through the end of February),Â according to the Monthly Treasury Statement released today.
That is about $6,733,300,000 more than the $604,584,700,000 in individual income taxes (in constant 2017 dollars) that the federal government collected through the first five months of fiscal 2016.
Despite collecting a record amount in individual income taxes, the Treasury still ran a $348,984,000,000 deficit in the first five months of this fiscal year.
Tax collections should continue to rise, too: Job creation is on the uptick, and the labor force participation rate is also rising. (RELATED:Â #MAGA: Job participation rate rising as construction starts gain most in aÂ decade)
These two factors, combined with a rising stock market, will mean massive amounts of new revenue for the Treasury, but two things may work against fiscal responsibility.
First, there is the age-old problem of Washington spending more than it takes in hasn’t been addressed yet – and may not be anytime soon.Â Neither the Trump administration nor Congress is even whispering about entitlement reform, although House Speaker Paul Ryan, R-Wis., has talked about itÂ recently (and he believes President Donald Trump shares his view that reforms do need to happen). Will it happen? Not likely; if or when the subject comes up, Left-wing Democrats and their propaganda division, a.k.a. the establishment media, will demagogue the issue to death (remember when Ryan was depicted as pushing an old woman in a wheelchair over a cliff?)Â And now, we may be on the cusp of retaining yet another one – Obamacare – if GOP leaders, rank-and-file members of Congress and the president can’t agree on a viable replacement.
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Then there is the president’s pledge to cut taxes – commendable and not wholly unneeded for Corporate America and millions of taxpayers. But doing so in the face of spending a trillion dollars on infrastructure, which Trump is pushing for, doesn’t seem fiscally responsible.
Now, the infrastructure spending wouldÂ be offset by private investment, on which Trump has based his plan, but it only happens if Congress goes along. Will a GOP Congress sign off on $1 trillion in new infrastructure spending over the next decade?
The politically touchy subject ofÂ spending is more difficult for fiscal hawk Republicans than spend-like-a-drunken-sailor Democrats, butÂ private investment takes away that opposition. So it’s an option.
Either way, the Treasury is set to reap record amounts of taxes and revenue in the coming months and years, thanks largely to Congress’ and Trump’s economic growth policies. What they do with the windfall will matter for the future fiscal health of our republic.