Federal Tax Receipts Up for December
January 12, 2006
The Treasury Department released its Monthly Treasury Statement for December 2005 today, and the numbers show a growing economy that is spinning off record tax revenue for the federal government.
Total receipts for December 2005 alone were $26 billion larger than December 2004, which equaled a 12 percent increase.
Currently, total receipts for the 2006 fiscal year are $43 billion larger than they were for the same period last year. This is an 8.8 percent increase in revenue.
Driving this impressive increase is a large increase in corporate tax revenues. In December 2004 corporate revenue was $51.9 billion. In December 2005 corporate revenues equaled $71.2 billion; an increase of $19.3 billion, or a 37 percent increase.
These growing tax revenues are helping to lower the budget deficit. In fact, for the month of December, federal receipts were actually larger than outlays. The results was a nearly $11 billion surplus for the month. See more here.
Tax receipts will continue to grow if the economy continues its robust growth. It might be that the best way to ensure increasing tax revenues is for Congress to make permanent the recent tax cuts, possibly ensuring that strong economic growth continues.
Here’s a relevant chart from the Treasury release (click to enlarge):