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.

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3 Comments

  1. February 14, 19:08 #1 John Wesley Nobles

    Revenues have increased as predicted. We can only imagine with 0 corporate tax as in HR 25, The Fair Tax Act, how much revenue would be generated and repatriated in the form of consumption tax.

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  2. February 15, 12:43 #2 John Steinberger

    There is no question that FAIRtax would rev up the economy and make it the envy of the world. If only we could get a single state to test the FAIRtax model, we could get Congress to act on it. The South Carolina Fair Tax Act (H-3211) has been pushed to the side because corporations receive a “job creation tax credit” in which they collect employee state income tax and keep it.

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