Federal Collections Set Two New Records
I made the following statement in reaction to the release of the Monthly Treasury Statement (MTS) last week showing that two new records had been set for inflation adjusted per person receipts by the federal government.
Washington is flush with dollars, collecting more money per person for the budget year and more money than any twelve-month period on record, even adjusted for inflation. This is just more glaring evidence that Washington doesn’t have a revenue problem, it has a spending problem. Contrary to President Obama and Democrats in Congress, taking more hard-earned dollars from taxpayers is not the solution."
- Fiscal Year Record. According to the MTS, the federal government collected $10,161 per person during the just ended fiscal year establishing a new fiscal year record for inflation-adjusted per capita receipts. The prior high occurred in fiscal year 2000 when real per capita receipts were $9,998 (September 2015 dollars).
- 12-Month Record. At $10,161, Washington’s haul for the prior twelve months also established a new record for receipts over a twelve month period. The prior high was for the period from May 2000 to April 2001 when real per capita receipts were $10,134 (September 2015 dollars).
- Receipts as a Share of the Economy. Based upon current estimates, yesterday’s report means that when the Bureau of Economic Analysis (BEA) releases its advance estimate of 3rd-quarter 2015 gross domestic product (GDP), the federal government’s receipts for the just ended fiscal year will likely top 18 percent of GDP for the first time since fiscal year 2001. Over the 50-year period spanning 1965 to 2014, receipts averaged approximately 17.4 percent of fiscal year GDP.