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Published On: Wed, Mar 6th, 2013

CBO projects record tax revenues for 2013 of $2.7 trillion, focus shifts to spending

Budget negotiations continue in Washington but a new report from teh CBO, Congressional Budget Office, may cause more shifts in talk.

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The CBO estimates the federal government is on pace to bring in a record $2.7 trillion in tax receipts this fiscal year. The increase reflects a steady post-recession rise in revenues. They ticked up 6 percent in 2012, but according to the CBO could jump 11 percent in 2013. 

Tax rate increases for top earners and ending payroll tax cuts for all earners will all play a big role in boosting revenues this year and this is also the No. 1 reason cited by Republicans for not wanting to agree to more tax increases as part of a new budget deal. 

“The president got $650 billion of higher taxes on the American people on January the 1st,” House Speaker John Boehner told NBC’s “Meet the Press” over the weekend. “How much more does he want?” 

President Obama spoke on the issue Monday saying “the kind of balanced approach of spending cuts, revenues, entitlement reform that everybody knows is the right way to do things.” 

According to historical figures from the White House, the last tax revenue record was set in 2007, when the government raked in nearly $2.6 trillion. By 2009, tax revenue took a dive, before gradually building back up. 

The CBO shows that, as a percentage of GDP, revenue is still below the 40-year average of 18 percent. The 2013 figure would represent 16.9 percent of GDP — a full point higher than it was the year before. 

The IRS has benefited from a bounty of sources, from increases in corporate income taxes to increases in estate and excise taxes. 

Meanwhile, spending is on pace to hit $3.55 trillion in 2013, roughly what it was in 2012. According to the CBO, that represents 22.2 percent of GDP — “a share that is still larger than in any year between 1986 and 2008.”

About the Author

- Writer and Co-Founder of The Global Dispatch, Brandon has been covering news, offering commentary for years, beginning professionally in 2003 on Crazed Fanboy before expanding into other blogs and sites. Appearing on several radio shows, Brandon has hosted Dispatch Radio, written his first novel (The Rise of the Templar) and completed the three years Global University program in Ministerial Studies to be a pastor. To Contact Brandon email [email protected] ATTN: BRANDON

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