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While reading the New York Times’ assessment of the upcoming tax cut bill, a sentence popped out at me: “Wary of any tax legislation that benefits the rich, Democrats have taken a firm stance against Republican policies that would add to the deficit and said they will not support a bill that does not pay for itself.” (“Senate Republicans Embrace Plan For $1.5 Trillion Tax Cut,” NYT: Sept 19, 2017).
This is laughable! Did the Democrats take a “firm stance” at any time during the Obama Administration against policies that added to the deficit? Of course not.
Indeed, most of the article was an attempt to paint the Republicans as hypocrites for trying to pass a tax cut plan that may or may not add to the federal debt after 10 years — while staying utterly silent about the fact that federal debt doubled during the Obama Administration, and each fiscal year ended in a deficit! The sudden interest in some sort of fiscal responsibility from the Democrats rings hollow.
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The Trump Administration has continued the same path of deficit spending as its predecessors.
(CNSNews.com) – The federal government collected record total tax revenues through the first eleven months of fiscal 2017 (Oct. 1, 2016 through the end of August), according to the Monthly Treasury Statement.
Through August, the federal government collected approximately $2,966,172,000,000 in total tax revenues.
That was $8,450,680,000 more (in constant 2017 dollars) than the previous record of $2,957,721,320,000 in total tax revenues (in 2017 dollars) that the federal government collected in the first eleven months of fiscal 2016.
At the same time that the federal government was collecting a record $2,966,172,000,000 in tax revenues, it was spending $3,639,882,000,000—and, thus, running a deficit of $673,711,000,000.
Individual income taxes have provided the largest share (47.9 percent) of federal revenues so far this fiscal year. From Oct. 1 through the end of August, the Treasury collected $1,421,997,000,000 in individual income taxes.
Payroll taxes provided the second largest share (35.9 percent), with the Treasury collecting $1,065,751,000,000 in these taxes.
The $233,631 in corporate income taxes collected in the first eleven months of fiscal 2017 equaled only 8.6 percent of total tax collections.
The $21,172,000,000 collected in estate and gift taxes equaled only 0.71 percent of total taxes collected this fiscal year.
(Tax revenues were adjusted to constant 2017 using the Bureau of Labor Statistics inflation calculator.)
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This past April, some Republicans approached Attorney General Jeff Sessions to look once again into the case of Lois Lerner and the IRS targeting scandal. Today, the Department of Justice released a statement that “reopening the criminal investigation would not be appropriate based on the available evidence.” Though the response was expected, it was still disappointing; Lois Lerner deserved to be prosecuted to the fullest extent of the law for her conduct.
Lois Lerner headed the IRS division that processes applications for tax-exempt groups. An inspector general’s report in 2013 found that the IRS had singled out conservative and tea party groups for extra scrutiny when they applied for tax-exempt status. Many had their applications delayed for months and years. Some were asked improper questions about their donors and even their religious practices. Yet, Obama’s Department of Justice concluded in 2015 that they had “found no evidence that any IRS official acted based on political, discriminatory, corrupt or other inappropriate motives that would support a criminal prosecution.” By then, Lerner and others embroiled in the scandal had resigned or retired.
It is a national tragedy that the woman who harassed taxpayer groups, interfered with evidence, and colluded with government entities to suppress thought remains absolved from her transgressions.
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As the new jobs report posted 156,000 jobs (forecasted 180,000) and a slight uptick in unemployment (4.4% from 4.3%), CNSNews noticed a shift in government workers stats:
The number of people working for the federal government has declined by 11,000 in 2017 while the number working for state governments has declined 2,000, according to data published today by the Bureau of Labor Statistics.
But because the number of people employed by local governments has climbed 12,000 so far this year, the overall decline in the number of people employed nationwide by government has only dropped by 1,000 in 2017.
Meanwhile, even though manufacturing jobs have increased by 137,000 this year, the number employed by government in August still exceeded the number employed in manufacturing by 9,818,000.
In December 2016, there were 22,299,000 people employed by federal, state and local governments in the United States. By August, that had dropped to 22,298,000—a decline of 1,000.
On the federal level, there were 2,819,000 people employed by government in December 2016. That dropped to 2,808,000 in August—a decline of 11,000 so far this year.
On the state level, there were 5,085,000 employed by government in December 2016. That dropped to 5,083,000 in August—a decline of 2,000.
On the local level, there were 14,395,000 employed by government in December. That climbed to 14,407,000 in August—an increase of 12,000.
With federal and state governments dropping a combined 13,000 employees so far this year, and local governments adding 12,000, the net change in government employment nationwide so far in 2017 has been a decline of 1,000.
The 22,298,000 people employed by government in the United States in August continues to far outstrip the 12,480,000 people employed in manufacturing—evening though manufacturing has seen employment gains this year as government employment has marginally declined.
“Manufacturing employment rose by 36,000 in August,” the BLS said in its release today. “Job gains occurred in motor vehicles and parts (+14,000), fabricated metal products (+5,000), and computer and electronic products (+4,000). Manufacturing has added 155,000 jobs since a recent employment low in November 2016.”
Of those 155,000 manufacturing jobs added since last November, 137,000 have been added since last December. In the last month of 2016, there were 12,343,000 people employed in manufacturing in the United States. In August, there were 12,480,000–accounting for the 137,000 gain in manufacturing jobs thus far this year.
Even with the recent gains in manufacturing jobs and the small drop in government jobs, the 22,298,000 people employed by government in the United States in August still outnumbered the 12,480,000 employed in manufacturing jobs by 9,818,000.
From 1939, when the BLS started tracking manufacturing and government jobs, through 1988, manufacturing jobs always outnumbered government jobs in the United States. In August 1989, for the first time, government jobs exceeded manufacturing jobs in this country.
by | ARTICLES, BLOG, GOVERNMENT, TAXES, TRUMP
As always, CNSnews posts the monthly revenue data as it is released from the Treasury. I have reposted it below in its entirety:
“The federal government collected record amounts of both individual income taxes and payroll taxes through the first ten months of fiscal 2017 (Oct. 1, 2016 through the end of July), according to the Monthly Treasury Statement.
Through July, the federal government collected approximately $1,312,691,000,000 in individual income taxes.
At the same time, it collected $976,278,000,000 in Social Security and other payroll taxes.
Prior to this year, fiscal 2015 held the record for individual income tax collections through July. That year, the Treasury collected $1,309,431,860,000 (in constant 2017 dollars) in individual income taxes in the first ten months of the fiscal year.
Last year (fiscal 2016), individual income tax collections from October through July dropped to $1,293,490,000,000 (in constant 2017 dollars).
This year’s record of $1,312,691,000,000 in October-to-July individual income taxes is $3,259,140,000 more than the 2015’s previous record of $1,309,431,860,000.
Before this year’s record $976,278,000,000 in October-through-July payroll tax collections, fiscal 2016 held the record at $948,709,020,000 (in constant 2017 dollars)—or about $27,568,980,000 less than this year.
Overall federal tax collections in the first ten months of fiscal 2017 were $2,739,861,000,000. Yet that did not the record for October-through-July total federal tax collections. In the first ten months of fiscal 2015, the Treasury collected $2,741,079,280,000 (in constant 2017 dollars) in total taxes. That was $361,218,280,000 more than this year.
While the Treasury has been collecting record amounts of individual income taxes and payroll taxes this fiscal year, some other categories of federal tax revenues have declined since 2015.
For example, in the first ten months of fiscal 2015, the Treasury collected $272,904,380,000 (in constant 2017 dollars) in corporate income taxes. In the first ten months of fiscal 2017, the Treasury collected only $232,294,000,000 corporate income taxes.
In the first ten months of fiscal 2015, customs duties were $30,705,180,000 (in constant 2017 dollars). In the first ten months of fiscal 2017, they were only $28,427,000,000.
In the first ten months of fiscal 2015, excise taxes were $68,686,630,000 (in constant 2017 dollars). In the first ten months of fiscal 2017, they were only $65,187,000,000.
Even as it was collecting record individual income taxes and payroll taxes in the first ten months of fiscal 2017, the Treasury still ran a deficit of $566,022,000,000.
That is because while the overall federal tax collections for the period were $2,739,861,000,000, overall federal spending was $3,305,882,000,000.”
(Historical tax revenues were put in constant 2017 dollars using the Bureau of Labor Statistics inflation calculator.)
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Anthem announced today that it would discontinue individual insurance coverage plans in Virginia in 2018, the third major insurer to do so this year; Aetna and United Health announced their plans earlier in the year. For Anthem, this marks the 4th state change so far in 2017, after Indiana, Ohio, and Wisconsin.
In their press release, Anthem noted,
“Today, planning and pricing for ACA-compliant health plans has become increasingly difficult due to a shrinking and deteriorating Individual market, as well as continual changes and uncertainty in federal operations, rules and guidance, including cost sharing reduction subsidies and the restoration of taxes on fully insured coverage. As a result, the continued uncertainty makes it difficult for us to offer Individual health plans statewide in Virginia.” Anthem will “reduce its plan offering and will only offer off-exchange plans in Washington and Scott Counties and the city of Bristol, VA.”
According to the Richmond Times-Dispatch, the move would be significant: “More than 206,000 Virginians could lose their individual health insurance policies with the sudden withdrawal of Anthem Blue Cross Blue Shield in Virginia, the state’s largest insurer, from the federal exchange and individual market in 2018.” Anthem will still employer-based plans, as well as Medicare and Medicaid plans.
The move leaves just five insurers in Virginia — Optima, Kaiser, Piedmont, Cigna, and CareFirst. Some localities will be left with just one insurer choice next year. This move by Anthem is a big deal, and yet another major failure of the poor structuring of the entire Obamacare apparatus. Americans deserve better.
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Daniel Mitchell from CATO put together a round-up over of articles over the last few days from various sources chiming in their opinion of Session’s expansion of asset forfeiture. It was published on International Liberty. The list is below; you should also read the article its entirety.
Writing for USA Today, Professor Glenn Reynolds correctly castigates the Attorney General for his actions.
David French of National Review is similarly disgusted.
Erick Erickson adds his condemnation in the Resurgent.
In a column for Reason, Damon Root of Reason adds his two cents.
Last but not least, the editors of National Review make several important points.
One last point of note that Mitchell included is that “the first two administrators of the federal government’s asset forfeiture program now want it to be repealed.”
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There continues to be a notion that carried interest is something that needs to be fixed because of a seemingly unfair low-tax capital gains income rate.
It is true the rate is low. But so what? It’s not as though the income isn’t from capital gains. If the law was changed so that the operators were taxed at ordinary income only, it wouldn’t get rid of those gains — it would simply mean that the investors get the benefit of the capital gains lost by the operators. This fixes nothing.
Ultimately such a change –which is being proposed by President Trump like it was by President Obama — will merely shift the tax benefit from the operators to the investors. This takes a tax break away from people who are working for a living and gives it to millionaires who are just investing – pure hypocrisy from liberals who wish to inflict additional taxes on the wealthy at every step. It make compensation deals for hedge fund operators a bit more complicated (i.e. requiring more assistance from accountants), but the amount of compensation stays revenue neutral.
Therefore, it takes a whopping dose of either incompetence or disingenuousness from the many carried interest critics to look at the hedge fund industry and proclaim that “carried interest” is a problem that needs to be addressed.
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From the WSJ: “With Wednesday’s proposals—which include a 15% tax rate for all businesses, lower individual rates, a bigger standard deduction to benefit middle-income households and the repeal of the estate and alternative minimum taxes—Mr. Trump hopes to speed up economic growth and make his mark as a historic tax cutter.
What the administration delivered Wednesday largely hews to tax-cut proposals Mr. Trump made during his campaign last year, but includes some crucial changes. Most notably, he is proposing to repeal a provision of the tax code that allows individuals to deduct the state and local taxes they pay from their reportable income. That will hurt residents of high-tax states such as Mr. Trump’s home state of New York, New Jersey and California, and is already spurring objections from Republican lawmakers in those largely Democratic states.
Such a repeal has the potential to raise more than $1 trillion over a decade, which would help fund the reduction in rates and get the tax plan through Congress, which is focused on deficits in part because of budget rules.”
“Unless Mr. Trump can attract votes from Democrats—which appears unlikely—the plan must comply with legislative procedures that allow for a party-line vote in the Senate, where Republicans have 52 seats out of 100.
The key to those procedures: Any tax plan can’t increase budget deficits beyond a 10-year period. The Committee for a Responsible Federal Budget said Wednesday that the plan would cost about $5.5 trillion in lost revenue over a decade. Those limitations could lead Republicans to make some or all of the tax cuts temporary to limit the long-run fiscal effect.
Mr. Trump’s team intends to argue that his tax cuts will spur economic growth and increase revenue, which would help avert increased deficits. Lawmakers and Congress’s nonpartisan tax policy scorekeepers—the Joint Committee on Taxation—need to agree for the plan to proceed. Independent experts cautioned that the administration’s growth assumptions appear optimistic.”
As more details of this plan emerge, we can assess its merits and pitfalls.
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I’m sick and tired of reading over and over again in places both liberal and conservative that Trump’s (as well as the Republican’s) proposed tax reforms are going to give the lion’s share of the cuts to the top 1%. The entire concept is totally distorted.
In fact, nobody has been talking about the series of tax changes that occurred when Obama and his Democrat cronies passed the Obamacare increases. These raised the Bush tax rates on only the wealthiest from 36% – 39.6 % and then again raised the tax rates on the wealthiest by adding a net investment income tax (NIIT), otherwise known as the “Obamacare tax,” which covered all investment income. The increase also raised capital gains on the wealthiest ones from 15% – 20%. When the 3.8% tax would get tacked on, capital gains rates effectively went from 15%- 23.8% — an increase of about 55%. That’s ridiculous!
Those ludicrous tax increases were principally responsible — along with the hemorrhage of regulations coming out of the Obama administration — for the horrific economic performance since Obama took office. The first step of any meaningful tax reform should be to reverse those Obamacare tax increases, which went 100% to the higher income individuals, and 0% to the middle class and lower income. The reversal of those insane tax increases should in no way be considered a tax cut. It is just restoring what was in fact an egregious toxin on our entire economy.
