Federal tax revenue breaks a new record – and that’s a problem
News out of the Treasury Department  this week showed that federal tax revenue for fiscal year 2014 exceeded $3 trillion – an increase of nearly $247 billion from the previous fiscal year. It’s the first time the federal government has collected that much in taxes – ever. It’s maybe the one thing under President Obama that’s “better off” than it was six years ago, depending on how you look at.
That the federal tax coffers have grown to record highs (thanks to American taxpayers) is no surprise given the Obama Administration’s liberal policies. What’s more surprising (or frustrating) is how none of that is reflected in the national deficit, which still stands at about $500 billion.
Several things could have, and probably did, contribute to the growth in tax revenue. Namely, the taxes in Obamacare, the “fiscal cliff” tax increases resulting from letting Bush-era tax cuts expire, and a slowly recovering economy, probably all played a role. But there’s no ignoring the fact that, clearly, Washington spending is still out of control.
If the Treasury is collecting billions more in taxes each year, shouldn’t that go toward paying down the national deficit? If not, where, exactly, is it being spent? Until those questions are answered, it’s safe to say Americans should have the right to hang on to more of their hard-earned tax dollars.
Congress must tackle tax reform. That Democrats will call for even more tax increases is about as certain as the rising sun.
But Washington obviously has more revenue than it knows what to do with. The federal tax code is a gigantic maze of loopholes and regulations. It’s time to simplify it and thus, lower taxes for middle-class Americans. They know what to do with their money better than Washington does.
- 1- Dubay, Curtis. Obama Tax Hikes Drive Federal Tax Revenue Above $3 Trillion for First Time Ever. http://dailysignal.com 21 October 2014.