US Sees Biggest Revenue Surge in 44 Years Despite Covid

I suppose this helps narrow the deficits, but deficits for the fiscal year (which started Oct 2020) are still very high, but they are expected to be cut to half in 2022.

US Sees Biggest Revenue Surge in 44 Years Despite Covid
https://www.realclearpolicy.com/202...e_surge_in_44_years_despite_covid_798648.html

That translates into $627 billion more than in 2020, according to the nonpartisan Congressional Budget Office, which estimates that, for the first time, total government revenues topped $4 trillion.

“They are just booming,” said Mark Booth, a former top revenue forecaster at the agency. “It is very unusual.”

“Usually revenues get hit hard in the year after a recession,” said Booth. “This time it is the opposite.
.
.
Payments by big companies had plunged in the wake of Republicans’ 2017 tax cuts, falling by almost a third to $205 billion the following year.

 

I absolutely abhor the term "revenue" when used by the govt

they take from the productive; that's it

It's shameful that they took a lot more

 

Good news!!! Let's see if it get lost in the fray of the media drama cycle.

 

Yes, I know many think the paying for what you spend is shameful, while others prefer more balanced budgets.

 

The revenue surge is due to inflation.
The surge is not really in "real dollars" but in inflated dollars.

You earn 15% more but things also cost 15% more.

 

Yeah they make revenue by stealing it from people who really make it.

It doesn't really matter if the currency is devalued. And that they're just stealing from peoples savings.

I bet "revenue" was high in terms of number of marks during the Weimar republic too.

If you divide a ten inch pie into a thousand pieces you can feed a thousand people with it you know.

 

But the numbers are bigger so yeah.

 

Its due to increased economic activity. People spend like crazy, stock market is way up etc. Of course the comparison point is the disaster of 2020, which also makes the increase bigger.

 

The article says that revenue has increased 18%.
What was the inflation rate over the course of this year, 15%?
A 3% increase isn't all that great, considering the economy was expected to start rebounding back to where it was 2 years ago, before the pandemic.

 

Trump's tax "cuts" strike again.

 

go Biden, best economy ever

 

Yes, if only we had more inflation, the tax revenues could be even higher!
(sarcasm)

 

They never do. They simply provide more money for politicians to spend.

 

No, inflation was nowhere near 15% and how to you figure inflation percentage is one-to-one with percentage of federal revenue increase? It doesn't make any sense. We are talking about an increase in federal tax revenue, not in State sales tax revenue. Is it hard for you to accept the fact that there was more economic activity this year, and that wages went up, more revenues were collected from the stock market players, corporations, etc

Ehm...no, the deficits would have been even bigger if revenues had been lower. You might be right going forward, but not looking backwards.

 

I disagree. The govenrment would have had to inflate the money supply to a greater degree or borrow more. It is easy to see. Inflation has continued unabated since the Coolidge administration and so has borrowing, much of which gets monetized anyway. All increased revenue does is reduce these two forms of fiscal mismanagement.

 

They spend whatever they need to spend, and in the end of the year, they compare spending vs revenue and figure out the deficit. The less revenue, the bigger the deficit.

 

No they spend whatever they want to spend. The deficit is nothing more than the gap between revenues and spending. It is resolved with debt or inflation. It can be fixed by reducing spending. The problem is inflation which they cannot fix. It is baked into the value of the currency. The dollar has lost more than 90% of its value during my lifetime because of inflation.

 

That's what I said.

Which has larger deficit:
a) 1T spending vs 800B revenue
b) 1T spending vs 400B revenue

I know you know the answer.

Fractional reserve banking system increases money supply by design. Money loses its value, but there is more of it. However, that is not the topic here.

 

True. Money loses value so that paying national debt is done with cheaper dollars. The "design" to which you refer is called fiscal mismanagement and corruption. It is the topic here. The issue is government living beyond its means.

 

The topic is massive increase in revenue.

Fractional Reserve Banking increases money supply by design, but its not about mismanagement, it is very carefully managed to increase the profits of the members of the banking cartel. The government doesn't run the system, the cartel does (The Federal Reserve).

For your entertainment:

 

I heard your complaint and I ignored it.

Inflation is the very definition of fiscal corruption. It doesn't increase profits of banks. It only decreases the value of the currency. Sorry you are in left field.

 

Why are you so hell bent on derailing threads? Hobby of yours?

I didn't say inflation increases their profits, I said Fractional Reserve Banking does. It enables them to borrow money they don't have, and collect interest on it. Inflation is a by-product. You are not comprehending what you are reading.

Sure, same to you, - what ever that is supposed to mean.

 

Obviously, inflation is pushing everyone up into higher brackets. Everyone else who earned it “eats a little less”.

How about scribbling out that 1T and making it zero. Which is better now?

 

You mean wage increases caused the whole thing?

Wages did increase, and therefore income tax revenue rose too, but it was not the biggest driver in revenue growth.

Why do say you eat less when your wages improve?

 

I find value in correcting misinformation. You probably do too unless it is your misinformation.