Donald Trump is more popular at this point in his first term than Barack Obama was. Despite 24/7 anti-Trump media attacks and a D.C. Establishment that continues to try and throw him under the bus, President Trump moves forward accumulating victories one after the other. His enemies hoped to make the 2018 Midterms his Waterloo. Just a few months earlier it appeared they might succeed. Today that success is far less certain as millions of Americans enjoy the benefits of an ever-expanding Trump economy.
The Mojo of Trumponomics
One of the key principles of Trumponomics is that faster economic growth can help solve a multitude of other social and economic problems, from poverty to inner-city decline to lowering the national debt.
…Now for the even-better news. We are already starting to see a fiscal dividend from President Trump’s tax, energy and pro-business policies. The Congressional Budget Office reports that tax revenues in April — by far the biggest month of the year for tax collections because of the April 15 filing deadline — totaled $515 billion, which was a robust 13 percent rise in receipts over last year.
MoneyWeek reports that the $218 billion monthly surplus (revenues over expenditures) this April was the largest ever, with the previous record being $180 billion in 2001. (April is always the one surplus month.)
Here’s the simple lesson: More growth, more tax revenue.
But there’s another lesson, and it is about how wrong the bean counters in Congress were who said this tax bill would “cost” the Treasury $1.5 trillion to $2 trillion in lost revenues over the next decade. If the higher growth rate that Trump has already accomplished remains in place, then the impact will be well over $3 trillion of more revenue and thus lower debt levels over the decade. Putting people to work is the best way to balance the budget. Period.
…No one thought that Trump could ramp up the growth rate to 3 percent or that his policies would boost federal revenues. But he is doing just that — which is why all that the Democrats and the media want to talk about these days is Russia and Stormy Daniels.