Tuesday, December 25, 2018

Taxes Up 30%!

A couple of months ago yours truly complained a bit about some fiscal dishonesty coming from Team Trump:
He was basically lying to us hoping the public would be too stupid to realize that when the price level rose by 2.5% during the same period, we are talking about a 2% real decrease in tax revenues.
But if we look at customs duties we do see an increase in a category that represents a very modest part of Federal tax collections. Back in the 3rd quarter of 2017, these collections were a mere $38,428 million but by the 3rd quarter of 2018, they had risen to $51,383 million. A 33.7% nominal increase in a year represents a 31% real increase. Team Trump take a bow! Of course this is not only an inefficient means of collecting taxes but also one likely to hit the average Joe the most. It is also a drop in the bucket and pales to the reduction in real tax revenues from that income tax giveaway to the well to do.

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