April 25, 2017

Do tax cuts blow up the budget? History says no.

In FY 2014, Fiscal Research projected revenue collections in the future. And then the conservative majority cut taxes.

With tax cuts, actual revenue still exceeded the projections made before the tax cuts were passed. Faster economic growth generates government revenue and tax reduction helps the economy.

Revenue Projection Revenue Collection

2014 $20.7 billion $21.45 billion

2015 $21.4 billion $22.15 billion

2016 $22.3 billion $22.12 billion projection ($570 million above projection through March )

Already this year through March, revenue collections have grown $570 million above projection and should easily exceed it even after the reform majority cut middle class taxes.

The chicken littles claiming another tax cut will hurt the budget belong on a plate at Bojangles.