Monday, February 13, 2017

Record Tax Revenue

Federal tax revenue over the first 4 months of the 2017 fiscal year† (October through January) set a record.

Big deal.

There are two things to consider here.

First, if tax rates are more or less constant, and income goes up, tax revenue will go up too. So we should not be surprised if tax revenue sets records when GDP is setting records. It’s just not that hard for a growing series.

Second, this is actually a good thing. No one like paying taxes. But if tax revenue is going down, and your policy hasn’t changed, something’s really wrong.

† Do note that this is a politically conservative site. It’s biased. But they’re just reporting numbers that are public information.

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