Revenues At All-Time High, What About Spending?

The Congressional Budget Office reported this week that through the first four months of the fiscal year (Oct 2006 - Jan 2007), total tax revenues collected increased by $74 billion compared to the same period last year, almost a 10% increase. For the month of January there was a $40 billion surplus, more than twice the surplus in January 2006.

As the table above shows, individual income tax receipts increased by $45B (+12.6%) and corporate taxes increased by $20B (+22%), 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 hike" 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. Now, if they could just get that spending part under control (see cartoon above).