The government continues collecting more taxes and debt. That which is unsustainable will not be sustained.
Back in September 2014, Bob Allen wrote about “Record Revenues for the Federal Government as the Debt Grows.” Sadly, the trend hasn’t stopped since then. CNS News reports, “$2,672,414,000,000: Federal Taxes Set Record through July; $17,955 Per Worker—Feds Still Run $465.5B Deficit.”
The federal government raked in a record of approximately $2,672,414,000,000 in tax revenues through the first ten months of fiscal 2015 (Oct. 1, 2014 through the end of July), according tothe Monthly Treasury Statement released today.
That equaled approximately $17,955 for every person in the country who had either a full-time or part-time job in July.
It is also up about $183,397,970,000 in constant 2015 dollars from the $2,489,016,030,000 in revenue (in inflation-adjusted 2015 dollars) that the Treasury raked in during the first ten months of fiscal 2014.
Despite the record tax revenues of $2,672,414,000,000 in the first ten months of this fiscal year, the government spent $3,137,953,000,000 in those ten months, and, thus, ran up a deficit of $465,539,000,000 during the period.
The story came with a chart:
It is important to remember this when we hear that the rich aren’t taxed enough or that taxes are too low. Think about the size of that deficit! You simply can’t tax people enough to cover that amount. It is impossible.
According to the Bureau of Labor Statistics, total seasonally adjusted employment in the United States in July (including both full and part-time workers) was 148,840,000. That means that the federal tax haul so far this fiscal year has equaled $17,954.94 for every person in the United States with a job.
In 2012, President Barack Obama struck a deal with Republicans in Congress to enact legislation that increased taxes. That included increasing the top income tax rate from 35 percent to 39.6 percent, increasing the top tax rate on dividends and capital gains from 15 percent to 20 percent, and phasing out personal exemptions and deductions starting at an annual income level of $250,000.
An additional 3.8 percent tax on dividends, interests, capital gains and royalties—that was embedded in the Obamacare law—also took effect in 2013.
If you think that Republicans are less likely to approve tax increases now that they have more power, I think you are being naïve.