September 13, 2018

August 2018 Monthly Treasury Statement: Record Income Tax Collections, Out-of-Control Spending

Filed under: Economy,Taxes & Government — Tom @ 9:00 pm

The good news in today’s Monthly Treasury Statement for August is that year-to-date income tax collections, with just one month left in Uncle Sam’s fiscal year, are up by $100 billion, or 7 percent. (Go to Pages 5 and 6 at the link for the figures discussed in this post.)

Yes, the increase in individual income tax collections has largely been offset by lower corporate tax receipts (-$71 billion). But that’s still a net gain. The overall net pickup in receipts has been $19 billion.

What was that about last December’s tax cuts blowing a hole in the deficit?

The bad news is that spending, aka “outlays,” in August alone totaled $433 billion. That annualizes to $5 billion. Year-to-date total outlays of $3.88 trillion are $240 billion, or 6.6 percent, higher than the same time last year. That’s just ridiculous.

If September’s collections exceed September 2017′s $348 billion by about 1.2 percent, full-year receipts will match the $3.338 trillion full-year total the Congressional Budget Office projected in April. (Click on the first April 2018 link here for the downloadable spreadsheet with this data.) The problem is that full-year spending is on track to exceed the CBO’s April prediction of $4.142 trillion by about $100 billion.

Out-of-control spending is the entire reason why fiscal 2018′s deficit will be higher than CBO projected in April.

So now you know that anyone blaming last year’s tax cuts for this year’s deficit is being fundamentally dishonest.

 

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