Democrats keep telling us they need more revenue, and the mean old Republicans won’t let them raise taxes again to bring in more of it. As usual, they lie. The federal government is bringing in more revenue than ever. They just spend it faster than it comes in.
Federal revenue will return to its pre-recession levels in 2013, according to projections from the Congressional Budget Office (CBO), setting a record for the most money the government has ever taken in.
In its latest Budget and Economic Update, the CBO forecasts that federal revenue will top $2.7 trillion in 2013, slightly higher than the $2.6 trillion the government collected in 2007, when the last recession officially began.
Government revenues had fallen by nearly $500 billion during the recession to $2.1 trillion in 2009, contributing to the $1.5 trillion deficit that year. However, federal revenues have been recovering since the recession ended in June 2009, and the CBO now projects that they will slightly eclipse their pre-recession peak.
In fact, the $2.7 trillion in revenue will be the most money the federal government has collected in history.
The federal government doesn’t have a revenue problem, it has a spending problem and the sequester does little to address it.
Update: More evidence that the government is spending more than it can tax out of the economy – the rich are now paying more in taxes than they’ve paid in three decades. These progressive democrats won’t be happy until they’ve killed the golden goose. We’re already seeing the result of their rotten policies. It’s only going to get worse.