- Total tax receipts in the first fiscal quarter of 2020 increased by $35 billion compared with the same period last year.
- This represents a 5 percent increase in tax receipts, raising the overall level to $806 billion.
- This is partially driven by an increase in corporate income taxes, which increased by $11 billion on net, or 21 percent.
The 2017 tax cuts are bringing in more revenue in their second year. This revenue increase follows the economic theory of tax cuts. Through greater capital formation, companies have hired more workers and increased output, generating more economic activity from which the government can collect taxes. As opposed to raising taxes and quashing economic activity, tax cuts have unleashed growth, providing the government more opportunities to collect revenues.