Wednesday, March 07, 2007

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.

1 Comments:

At 3/07/2007 4:17 PM, Anonymous Eric said...

So that means the idea of lowering income taxes have actually helped the economy! This is similar to Reaganomics right? Lower taxes and lower government. Dont we have the lowest marginal tax rates in the history of our country?

 

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