Evans News Report

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Economy, Politics

Trump Calling For $15 Billion In Spending Cuts, As Tax Cuts Create Record Setting $218 Billion Surplus, Meanwhile Democrats Calling For Tax Increase If They Take Back Congress.

By: Brian Evans

Now that the Trump Tax cuts have had time to take root throughout the American economy, the Congressional Budget Office has reported a record budget in April, which contradicted their original forecast for the Trump Tax Cuts that were passed by Congressional Republicans, but opposed by twelve Fabian-Rino Republicans, and EVERY SINGLE DEMOCRAT! Even the left-leaning allegedly non-partisan Congressional Budget Office was highly critical of the tax cuts, and claimed that their cost to America’s bottom line would be in the trillions of dollars.

Just recently, the Progressive news site Mother Jones reported just last month that the CBO budget report says that the Republicans’ $1.5 trillion tax cut will increase the federal debt by…$1.9 trillion. Mother Jones listed series of charts to better show the CBO’s predictions of tax cuts on the federal government’s debt.

Mother Jones, Democrats, and the Mainstream Media made comments like…

“This comes from Table B-3 in the report. In other words, the tax cut doesn’t pay for itself. It doesn’t even partially pay for itself. It does have some positive economic feedback, but not very much, and nowhere near enough to make up for the lost revenue and the increase in interest payments” Mother Jones

” In other words, spending still isn’t the problem. The problem is tax cuts for the rich that slash revenue and increase debt service. Put those together, and even with a modest supply-side economic benefit the tax cut still costs more than the static revenue estimate. Maybe it’s time to finally put the Laffer Curve to rest, boys.” Mother Jones

Now, just a few short weeks later, Mother Jones and other Progressive-Socialists and Anti-Capitalists are scrambling to spin the news, as new information has come to light, and it turns out that President Trump and Congressional Republicans were right, and Mainstream Media along with Democrats were dead wrong!

In fact, the CBO’s new scores reveal that the federal government is looking to take in its biggest ever monthly budget surplus, as the American economy is showing strong signs that it is not only taking off, but is surging off of the charts, and beore the tax cuts have fully had time to take effect in our American economy. All signs that show that supply side economics and the ‘Laffer Curve’ theory does work, despite what Mother Jones and other Socialist leaning, Progressive sites claim.

To better understand what is happening, one must understand supply side economics, and the laffer curve. The theory behind the economic concept called the laffer curve claims that as taxes increase (like during the Obama Administration), tax revenue collected by the government also increases. However, when taxes reach a critical point (past point T*), and American’s paychecks get small enough that they lose the incentive to work as hard, and sometimes not at all. As a result, tax revenue during the Obama years dropped drastically, leaving less government revenue and higher debt. The laffer curve goes even further in showing that when tax rates hit 100% (like under communism), people lose all reasons and will to work. As a result, federal revenue hits rock bottom. (Seen below)

Laffer Curve

Governments should be trying to hit that sweet spot on the curve (point T*), because that is the exact point where governments are able to collect the maximum amount of tax revenue, while still having the incentive for people to continue working hard.

This brings us back to the Trump and Republican tax cuts. President Trump pushed hard to cut the tax burden on American’s as much as possible, without depriving the government of much-needed money to finance the military, infrastructure, schools, police, and other services that are needed to keep American society functioning well. It was not an easy task, since many Congressional and Senate leaders follow Fabian Economics models that are identical to the Progressive-Socialist models. They just take a different path to get to a socialist state. Therefore, Fabian-Economic Rino Elitists in the Party understandably sided with the Progressive-Socialist Democrats, since they both belive that Socialism, and not Capitalism, is the ideal economic model for America.

However, the Laffer Curve is just one aspect of conservative supply side economics model. Supply side economics argues that economic growth is affected greatest by not simply lowering taxes, but also decreasing regulations. That is because regulations, like the massive growth of burdensome regulations that were enacted under the Obama Administration, tend to choke out business, drive businesses overseas, and disincentivize the expansion and growth of businesses and manufacturing. In fact, the last time the economy grew with such vigor was under President Reagan’s Administration. Ironically, it was Reagan and his chief economist, Robert Mundell who started supply-side economics. Since Reagan, every subsequent Republican and Democrat Presidential Administration has countered Reagan’s growth and expansion of the United States economy by increasing taxes on American’s, and slapping massive regulations on businesses, corporations and the manufacturing sector. That is until President Trump and his Administration took control of the economy in 2017.

President Trump has slashed regulations across the board, freed up manufacturers to expand, oversaw the largest reduction of taxes on American’s in history, has been, and continues to renegotiate trade deals between America and China, Mexico, Canada, South Korea, Japan, other numerous other countries around the globe. He is signing trade deals that are bringing manufacturers back to the United States, stifling currency manipulation perpetuated on the United States by countries like China, and re-leveling the playing field for American businesses and corporations.

As a result, under the leadership of President Trump, the United States government collected a record $515 billion, while spending $297 billion, for a total monthly surplus of $218 billion in April alone. The CBO says that they will have a better idea of what is behind the surge when more information rolls in. The CBO said…

“Those payments were mostly related to economic activity in 2017 and may reflect stronger-than-expected income growth in that year,” the analysts said in their monthly budget review. “Part of the strength in receipts also may reflect larger-than-anticipated payments for economic activity in 2018. The reasons for the added revenues will be better understood as more detailed information becomes available later this year.”

However, it doesn’t take a rocket scientist to see the writing on the wall. American’s have more disposable money; therefore, more money to spend.

Food stamp enrollment dropped by more than 1.3 million in just two months, according to the latest data from the U.S. Department of Agriculture (USDA). In fact, the USDA data reveals that the number of participants in the Supplemental Nutrition Assistance Program (SNAP) plunged from 41,374,348 in December 2017 to 40,032,131 in February 2018—a decrease of 1,342,217.

The Food stamp enrollment has plummeted by more than 1/2 million for the second month in a row in fiscal year (FY) 2018; last month’s data showed that 608,039 discontinued their participation in SNAP. Below, the figures show USDA’s breakdown of food stamp usage since October of last year:

October to November- 4,015,110
November to December- 358,242
December to January- 734,178
January to February- 608,039

Now, to further perpetuate America’s expanding economy, President Trump wants to pass a $15 Billion dollar ‘rescission’ package. He challenged lawmakers to cut unspent money that has been simply sitting in accounts, unable to be used, across the government. So far, President Trump has proposed 38 cuts including…

  • $4.3 billion in vehicle technology loan program
  • $800 million from a Obamacare payment pilot program
  • $200 million earmarked by the Obama Administration for the Ebola outbreak, which is no longer a problem.
  • $2 billion contingency fund
  • $7 billion from Children’s Health Insurance Program

Democrats immediately began attacking the spending cuts as an attack on lower and middle-income children throughout the United States. Democrat Chuck Schumer said…

“Let’s be honest about what this is: President Trump and Republicans in Congress are looking to tear apart the bipartisan Children’s Health Insurance Program (CHIP), hurting middle-class families and low-income children, to appease the most conservative special interests and feel better about blowing up the deficit to give the wealthiest few and biggest corporations huge tax breaks”

The Washington Post ran the headline

“Trump calls on Congress to pull back $15 billion in spending, including on Children’s Health Insurance Program”

However, their attacks on the President, and his proposal are nothing more than political spin, based on twisted and misconstrued facts. Spin that is designed to paint President Trump as evil, and make American’s believe that he is trying to steal money away from the lower and middle-income children throughout the country.

However, when the evidence is examined more closely, the $5 billion of that money being cut from CHIP is sitting in an account that has expired and cannot be spent. Time has lapsed for it to be used, and now it can either be rescinded and recaptured in a spending cut package, or continue sitting there to remain inaccessible and unused by even the program it was designed to be used for…CHIP. As a result, White House officials said that the reductions WOULD NOT HAVE ANY impact on the program, which has an enrollment of roughly 9 million children. Regardless, Democrats and Mainstream Media leave out the pertinent facts, and have chosen to once again mislead the American people and claim that President Trump is going to cancel the Children’s Health Insurance Program money, and their access to doctors and medical treatment.

Also, in the rescission package is money that was set aside for Hurricane Sandy, which has remained untouched, since New York and New Jersey refuse to put up the required matching funding. As a result, President Trump and his Administration have called for pulling the money to cut costs, but the two states have made it known that they will fight to keep that money in limbo, apparently because they believe that they are entitled to that money, even if they cannot put up the matching money; therefore, making the money worthless to anyone.

In all, President Trump’s rescission package is the largest one that any President has ever submitted, and certainly the first independent rescission-only White House proposal to clear Congress in almost 20 years. Also, it is a direct challenge to the Democrat leadership, who fought hard to increase spending during the Omnibus battle in March. As a result, Democrats have indicated that they are not likely to cooperate, and will fight the President, and Congressional Republicans who are trying to reign in out-of-control government spending. Fortunately, under Senate rules, bills like this rescission package do not have to face a Senate filibuster, likely speeding up its passage. Also, throughout this process, Congress can trim the amount, but it cannot go higher than President Trump’s $15 billion dollar proposal.

Ironically, rescission packages used to be common in Washington, but under the Bush and Obama White House, they became non-existent, as increased spending and high taxes became a staple. However, President Trump has now showed his intent to continue cutting government spending, combined with tax cuts in an effort to drastically reduce America’s $20 Trillion dollar deficit. President Trump has said that he plans to  create additional proposals out of the White House that would go well beyond efforts to cut unspent money. In fact, the President said that the next proposal will target duplicative programs, such as the tens of billions of dollars identified by the Government Accountability Office in a report last month.

The most exciting news, is the fact that although the tax cuts and slashed regulations have created the largest surplus of cash in history, it is only the beginning. Although the Congressional Budget Office numbers look great, the tax cuts barely even began to kick-start the economy. In fact, once the money begins to flow through the American economy, it will likely cause an even more massive surplus, and a deficit reducing windfall. That is, if Congress does their part in paying off the debt, rather than spending the money. A issue that has been a growing problem with the Washington D.C. Elitists. Especially since Democrats and Establishment Fabian- Economic Rino Republicans have increased spending by a whopping 5% so far, in the first few months of 2018. That combined with higher inflation which is driving up the government’s debt payments, increases in Social Security payments, higher disaster relief costs, and Military costs due to the President trying to rebuild a military that has been decimated under the Obama Administration.

However, the battle is not over. The Democrat Party and Nancy Pelosi (D-CA) have announced that it would be “accurate” to say that she would, and her Party would actively seek to raise taxes, and roll back the Trump tax cuts on the American people, if Democrats took control of Congress and the Senate. Also, she said that she would like to re-institute a single-payer healthcare program, in addition to increased taxes. Furthermore, Democrats would likely re-impose many of the burdensome regulations that President Obama had imposed, and President Trump removed. She made the comments at a Politico Live event during the first part of May. Pelosi said…

 Pelosi said while laughing…

“I do think we should revisit tax legislation in the way we always have — in a bipartisan, transparent way that the result is unifying for the country. I do object to what they did in the dark of night and in the speed of light, show up with something that gives 83 percent of the benefits to the top 1 percent and 86 million middle-income families will pay more taxes in the life of this bill, even though they called it a middle-class bill. It gives a trillion-and-a-half in tax cuts to corporate America, adding over $2 trillion to the national debt because of the interest on that money. And part of that benefit to corporate America is to allow them to create jobs overseas rather than here.”
Maybe Pelosi should actually read the bill before voting on it. If she had, she would learn that the Middle Classes got very large (not scraps) tax cuts. If Progressive’s and Fabian Economic Rinos actually looked at how the economy is beginning to churn and take off, they would realize the benefits of supply-side economics. Instead, Pelosi, Rinos, and Democrat leadership have chosen to take the high tax route with exorbent regulations. Both of which stymie the economy, and American’s pocketbooks. Also, they are taking a political position that is becoming more and more unpopular, as American’s are reminded of Reaganomics, as they begin to see the true benefits of Capitalism under good leadership. Leadership that knows how the capitalist engine works. Leadership that knows how to not simply rev up the American economic engine, or just drive it down the economic road to success, but to make it fly into financial prosperity for all American’s.
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2 thoughts on “Trump Calling For $15 Billion In Spending Cuts, As Tax Cuts Create Record Setting $218 Billion Surplus, Meanwhile Democrats Calling For Tax Increase If They Take Back Congress.

  1. You have great articles, but your inappropriate use of an apostrophe undermines your credibility and prevents me from sharing your stuff with others.

    “increasing taxes on American’s,”
    “American’s have more money”

    If it is possessive, you use the apostrophe before the s. But not if it is plural.

    For example, if it belongs to Americans, the apostrophe is there, as in “an American’s liberty”.

    Plural words, like more than one American, have no apostrophe.

    “increasing taxes on Americans,”
    “Americans have more money”

    Please fix this article.

    Like

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