Government Sets Record For Taxes-
President Joe Biden released a $6.011 trillion federal budget proposal in May 2021 for fiscal year (FY) 2022. The U.S. government estimates it will receive $4.174 trillion in revenue through Sept. 30, 2022, creating a $1.837 trillion deficit for Oct. 1, 2022 – see here.
So how is the US doing collecting those taxes? According to the Monthly Treasury Statement, the federal government collected a record $2,121,987,000,000 in total taxes through the first six months of fiscal 2022 (October through March). See the trend chart below and learn more here.
This also marked the first time that federal tax collections have exceeded $2 trillion in the first half of a fiscal year. Remember, the numbers presented are for a half year, not the full year. See the following fiscal map that shows the source and outlays in the budget.
The federal government ran a deficit of $668,267,000,000. That is because the government spent $2,790,254,000,000 during the period. The spending is running about $400bn under projections, and revenue is running about $200bn better than projected. However, this assumes that spending and tax collections will be linear throughout the year, and no other budget provisions are passed by Congress.
As inflation surges, the IRS has boosted federal income tax brackets for 2022, standard deductions, 401(k) contribution limits, and more. But other provisions remain unchanged, leading to higher tax bills over time. For example, couples filing together to sell their primary home may exclude up to $500,000 of profit (continued)
Government Sets Record For Taxes-
This post originally appeared on The Blue State Conservative.
