November 2, 2011
We had a 7% increase in tax revenues for 2011.
According to the CBO, the US government took in $2.3 trillion in taxes with an increase of $140 billion over last year. This increase didn’t come from raising tax rates, but from an increase in hiring (mostly in the private sector) which increased both income and unemployment insurance revenues. In other words, jobs resulted in revenue.
Unfortunately, the US government spent a lot last year, $3.6 trillion. So while revenues are now increasing, so is spending. Here is a snapshot of the results:
What’s wrong with this picture?