Record Tax Receipts, Shrinking Budget Deficit
Surging, record tax receipts of $2.116 trillion continued to shrink the federal deficit through the first 10 months of the fiscal year, the Treasury Department reported last Friday (see middle chart above).
Since Oct. 1, when the fiscal year began, the government has run a deficit of $157.3 billion, sharply narrower than the $239.6 billion in the year-earlier period. The White House predicts that the deficit this year drop to $205 billion, which will be the lowest deficit in 5 years, both in absolute dollars, and as a percent of GDP (see bottom chart above).
According to the WSJ, "So far this year, individual income taxes are up 11.4% to $965 billion (see top chart above), with much of the increase stemming from taxes on investments and other sources of income more important to the wealthy. Receipts from these so-called nonwithheld taxes are up 13.5% so far this year. Corporations also helped to fill the coffers, with corporate tax receipts up 10.5% so far this year to $289 billion."
MP: What happened to the "tax cut for the rich?" Aren't these data more consistent with a "tax hike for the rich?"