Tax revenues to grow 50% over next decade: Rep. Brady

By U.S. EconomyFOXBusiness

Rep. Brady: Have the revenue we need, it's the spending that's the problem

Rep. Kevin Brady, R-Texas, on reports on attacks on two tankers in the Gulf of Oman, the Republican tax reform legislation, efforts to rein in government spending, tariffs and USMCA.

The U.S. government may be dealing with a widening budget deficit, but it is not due to a shortage of tax revenues.

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The lead Republican on the House Ways and Means Committee, Rep. Kevin Brady, R-Texas, told FOX Business’ Neil Cavuto on Thursday that, for the first eight months of the year, tax receipts are at the highest level “in American history.”

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In inflation-adjusted terms, he added, it is the second-highest level of tax receipts in history.

“And it is growing more, expected to grow 50 percent more over this decade,” Brady said.

The Treasury Department on Wednesday said the U.S. budget gap grew by 39 percent during the first eight months of the year – as outlays outpaced revenues. The deficit was $739 billion, compared with $532 billion during the same period last year.

Brady added the problem is spending, not revenue collection. And while tax receipts rose 2 percent to $2.3 trillion, outlays rose 9 percent to $3 trillion.

When asked about Democrats’ hopes to repeal the Tax Cuts and Jobs Act, Brady said he “couldn’t think of a worse mistake.”

“Our economy grows when you give people control of their money,” he said.

Despite the fact that the majority of Americans were expected to see a net tax benefit as a result of the tax law, some people were surprised to see that their IRS refunds were smaller or non-existent. Others even owed the tax agency for the first time.

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The tax law was designed to give people more money each week, alongside more accurate withholding tables.

Brady said the upset over refunds was "a lesson learned."

“We assumed, because families live paycheck to paycheck, they wanted to see that relief immediately,” he explained. “A lot of families got the relief, didn’t quite notice it.”