The "Tax Hike" of 2003

The Congressional Budget Office reported yesterday that through the first five months of the fiscal year (Oct 2006 - Feb 2007), total tax revenues collected increased by $81 billion compared to the same period last year, a 9.3% increase. As the table above shows, individual income tax receipts increased by $50B (+12.8%) and corporate taxes increased by $20B (+21%), compared to the same period a year ago. We keep hearing about the "tax cuts of 2003" (rates were decreased) when it was actually a "tax increase" if we look at what happened to revenues.

In 2006, tax revenues were at all-time historical high of $2.4 trillion. At the current pace, tax revenues collected this will be $2.64 trillion, and will set another record.