More Tax Money Than Ever This Year
April 17, 2013
Over the past year we have heard over and over again from President Obama that we need to pay more in taxes. In fact this year, we’ll pay more than ever before in the history of our country. Both the non-partisan Congressional Budget Office (CBO) and the White House estimate the government will collect around $2.7 trillion in 2013, up from around $2.45 trillion last year. That number is set to go up in the coming years. The CBO projects the revenue collected by the government will double between 2012 and 2023.
If those CBO estimates are accurate, tax revenue to the government would be above the previous high point set in 2007. In addition, tax revenue as a percentage of gross domestic product (GDP) would rise from 15.8 percent in 2012 to about19 percent in 2015. Revenues as a percentage of the economy have averaged around 18 percent over the past four decades, reaching a high of almost 21 percent late in former President Clinton’s administration. Revenues hovered at around 15 percent of GDP in 2009, 2010 and 2011, according to CBO.
Despite these record breaking amounts in taxes paid by the American people, the president in his recently released budget has called for additional tax increases. The problem is less and less Americans agree with the “higher the taxes the better” philosophy. A Gallup poll released this week found that 55 percent of Americans believe they’re paying the right amount — the lowest in 12 years.
With Americans filing their annual taxes yesterday, that number may go even lower in coming week. Couple that with the government outspending its annual revenues by more than a trillion dollars each year of the Obama Administration and it will become more obvious to Americans that spending, not tax revenue, is the problem when it comes to getting our nation’s finances in order.