Tax cuts drove economic growth, leading to state budget surplus

In response to the Budget and Economic Forecast projecting a $1.332 billion surplus, Center of the American Experiment Economist John Phelan released the following statement:

“We can attribute this budget surplus to economic growth driven by federal tax cuts. This shows again that pro-growth policies are more effective at generating revenue than confiscatory taxes. There is absolutely no argument for tax increases with such a large surplus.

“This doesn’t mean lawmakers should go on a spending spree. Weakening manufacturing indicators driven by federal trade policy, coupled with slower employment growth, shows that we cannot take economic growth for granted.”