Congressional Budget Office: 2013 Tax Revenue Projected at Record $2.7 Trillion

by Colonel on March 4, 2013

“Yes, if $2.7 trillion in revenue materializes this year, that would set a record. It would surpass the prior peak of $2.6 trillion, set back in fiscal year 2007 before the recession began.

But that doesn’t mean federal tax receipts are fully back to normal.

Economists generally compare taxes and spending to the size of overall economy. That’s because demands on government often increase as the economy grows and population rises. And the value of tax receipts needs to be adjusted for inflation, to give a real sense of purchasing power.

Tax revenue will total 16.9 percent of gross domestic product this year, the CBO predicts, compared with 18.5 percent of GDP in 2007. It looks as if it will take another year, until 2014, for tax revenue to get back to 18 percent of GDP, which has been the average level since 1973.

” — Mark Trumbull, Copyright 2013 The Christian Science Monitor

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