(NationalSentinel) Taxes: The federal government once again took in a record haul of payroll and income taxes during the first half of the fiscal year, but at the same time ran hundreds of billions of dollars in the red.
As reported by CNS News:
Through March, the federal government collected approximately $695,391,000,000 in individual income taxes. That is about $7,387,280,000 more than the $688,003,720,000 in individual income taxes (in constant 2017 dollars) that the federal government collected in the first six months of fiscal 2016.
The federal government also collected $547,491,000,000 in Social Security and other payroll taxes during the first six months of fiscal 2017. That is about $2,731,820,000 more than the $544,491,000,000 in Social Security and other payroll taxes (in constant 2017 dollars) that the government collected in the first six months of fiscal 2016.
Despite collecting record amounts of individual income taxes and payroll taxes, the Treasury still ran a deficit of $526,855,000,000 in the first six months of fiscal 2017.
Also, even with record revenues from individual income taxes and payroll taxes in the first six months of fiscal 2017, overall federal tax collections were slightly down.
As part of his efforts to grow the U.S. economy, President Donald J. Trump has pledged to cut taxes across the board, for individuals and corporations, which critics say will massively increase the deficit – already at $20 trillion, thanks in large part to the last two presidents.
But one of the ways he’s attempting to make the numbers work is by dramatically decreasing the amount of federal spending – which is being fought by Democrats and members of his own party. He’s also working to reduce the size of the federal government and reduce bureaucratic burdens on businesses, both of which will serve to boost Treasury coffers.
That said, without help from Congress Trump can’t reduce the ballooning deficit. Lawmakers will have to find the political will to dramatically scale back mandatory entitlement spending, which consumes the lion’s share of the budget every year (a percentage which is growing).
Don’t hold your breath waiting for that to happen.