Facts are facts. They are not partisan, or at least, they shouldn’t be.
It may not always seem like it, but tax rates and related policies – hold that yawn, please – can be significant drivers of economic activity.
Translated, taxes can help or harm business, including manufactured housing.
That’s why the National Federation of Independent Businesses and others have championed tax cuts. For similar reasons, they are why the Manufactured Housing Association for Regulatory Reform (MHARR) has championed enforcing the law on regulations, not going beyond it.
The Daily Business News promoted for several years the point that tax cutting has proven to be a bi-partisan success in modern American history. President John F. Kennedy (D) cut taxes. President Ronald Reagan (R) cut taxes. Certainty on taxes and regulations are good for business, investors, and job creation.
Both of those presidents witnessed revenue growth, and economic growth in the wake of their tax cuts.
So, is it any surprise that the latest Treasury data reveals that after the historic tax cuts signed into law last year by President Donald J. Trump that revenue has grown?
That’s a fact.
“The federal government collected a record $1,305,490,000,000 in individual income taxes through the first nine months of fiscal 2018 (October 2017 through June 2018),” noted CNS.
There is still a sizable deficit, which was anticipated. Given structural reforms that are already underway, with more that could be coming in 2019, that could begin to fall back in line.
In a federal release do the Daily Business News, “The Monthly Treasury Statement of Receipts and Outlays of the United States Government (MTS) is prepared by the Bureau of the Fiscal Service, Department of the Treasury and, after approval by the Fiscal Assistant Secretary of the Treasury, is normally released on the 8th workday of the month following the reporting month. The publication is based on data provided by Federal entities, disbursing officers, and Federal Reserve banks.”
Econtrepreneur bills itself as the “Intersection of Business-Economics-Politics.” They’ve provided the following insightful information, which may include an insight that many never knew. Namely, that for years, tariffs and other taxes – not an income tax – were the bulk of the payments to support the federal government.
There are still serious structural changes that are needed in Washington, D.C. President Trump has said as much, and has included as part of his plan the goal for yet another round of tax cuts and making some of the ‘temporary’ cuts permeant. NFIB, which sources there say has hundreds of manufactured housing industry member companies, is promoting that phase two of tax cuts.
The U.S. economy is growing at a faster pace, and unemployment is at or near record lows for most measured groups.
Perhaps the most interesting recent development is that those who’ve sat on the sidelines for some time are now coming back out, looking for those better paying jobs. But another benefit is the hundreds of billions in capital pouring back into the U.S. One factory builder has already arguably benefited from that foreign or repatriated capital coming to America.
All of these economic drivers promise more economic growth, which will create still more federal tax revenues. Yes, trade is an issue, but there are experts who believe that it is going to get resolved, favorably for the U.S., in the weeks ahead. If so, that too will boost domestic industry, jobs, etc.
Politics aside, it’s all part of a promising economic outlook for the balance of the year. Of course, among the question marks are the midterms, which are now just 4 months out. Whatever comes, the Daily Business News will continue to monitor the developments. “We Provide, You Decide.” © ## (News, analysis and commentary.)
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