Trump tax cuts lead to $49 Billion January budget surplus

Trump tax cuts lead to $49 Billion January budget surplus
February 14 18:52 2018 Print This Article

The 2017 Tax Cuts and Jobs Act, which reduced taxes on individual and corporations, led to record-high federal tax revenue in January and a $49 Billion budget surplus for the month. Lowcountry Source has documented that reduction in federal taxes have always led to increases in revenue. Federal revenue in January totaled $361 Billion, versus $311.8 Billion in federal spending during the month.

The Trump tax cuts kicked in on January 1 for corporations, but most individual and small business taxpayers did not realize the lower tax rates until the beginning of February. Many states have already reported record-high revenue for the month of January. Georgia reported a 5.1% increase over 2017 January revenue, and Virginia, Massachusetts, Michigan and other states have reported the highest January revenues on record.

While South Carolina has not yet reported its January tax revenues, the January 29 report by the South Carolina Revenue and Fiscal Affairs Office projected that the 2018 federal tax liability for South Carolinians is projected to decrease $1.62 Billion from the year before. The report also projects an increase of $180 Million in state individual income tax revenue in 2018.