Chart of the Day: Record Tax Collections and Debt – The Government Only Grows Bigger

Contact Your Elected Officials
Right Wire Report Header

One of the hallmarks of conservative ideology is “smaller” government. With burgeoning budget deficits and the astronomical rise in the national debt, tax collections are also at record highs. The size of government is growing – especially when looking at it in terms of the percent of GDP.

As a share of GDP, federal tax collections are at a multi-decade high of about 19.6 percent in FY 2022, up from 17.9 percent last fiscal year and approaching the last peak of 20 percent set during the dot-com bubble in FY 2000.

There are only two other years in US history when federal tax collections exceeded this year’s level, both during World War II: in 1943, federal tax collections reached 20.5 percent of GDP before falling to 19.9 percent in 1944. See this in the chart below and learn more here.

Federal Tax Collections Approaching a Record High

These sobering numbers should give our elected officials pause. Record federal tax collections on top of surging prices – essentially an additional inflation tax paid by everyone.

While not part of the CPI, another measure of inflation (call it the Taxpayer Price Index?) is also surging: federal tax collections are up 21 percent over the last year, according to the latest data from the Congressional Budget Office (CBO). Federal tax collections hit a record high of $4.9 trillion in nominal dollars for the fiscal year (FY) 2022 that ended September 30, which is $850 billion more than last year’s $4.05 trillion in collections (also a record).

Just think, if we would cut taxes back to historical norms, this would put back 2.4% of the GDP into the productive economy. But this would also mean some of the waste in government would need to be addressed with less spending.

What’s most troubling about the record tax haul is that it was accompanied by a $1.4 trillion budget deficit, which helped push the US national debt over $31 trillion. The US government debt is soaring and has estimated to have reached 137.20% of the country’s GDP in 2021. See the soaring debt ratios in the chart below and see the source data here.

United States Gross Federal Debt To GDP

The bottom line is government is growing … is life getting better for it?

By Tom Williams

Right Wire Report
Right Wire Reporthttps://rightwirereport.com/
Right Wire Report was a group of concerned citizens who took action to promote traditional values and work for a better America.

A Widow Inspires The World

Erika Kirk moved the nation with her speech two days after her husband’s assassination, vowing to continue his mission and grow Turning Point USA.

Both Left and Right Are Making Lists

The right admired Charlie Kirk for his faith and patriotism, while the left opposed him for dismantling their positions and narratives with ease.

Redemption’s playbook: The Senior

The Senior isn’t your usual underdog tale, it’s real, it’s raw, and it flips every cliché on its head with a playbook full of grit and plenty of aftermaths.

Kirk Assassination Oddities

Just like the assassination attempt on President Trump in Butler, PA, there are oddities that do not add up with the actual assassination of Charlie Kirk.

Pharma-Funded Medical Groups Threaten Anti-MAHA Physician Strike

“A paradoxical pattern has been suggested in the literature on doctors' strikes: when health workers go on strike, mortality stays level or decreases."

Charlie Kirk Assassination Suspect Under ‘Special Watch’ in Custody: Sheriff’s Office

Suspected assassin of Charlie Kirk is on “special watch” in custody and held separately, the Utah Sheriff’s Office spokesperson confirmed.

Employees Fired, Suspended for Celebrating Charlie Kirk’s Death

Multiple U.S. companies warn employees they could lose their jobs if they post comments celebrating or mocking the assassination of Charlie Kirk.

Turning Point USA Announces Memorial Service for Slain Founder Charlie Kirk

The conservative political nonprofit Turning Point USA has announced a Sept. 21. memorial service for its late founder, Charlie Kirk.

Latin American Leaders Pay Tribute to Charlie Kirk

Latin American leaders mourned the passing of Charlie Kirk, who was assassinated as he spoke to a crowd of students at Utah Valley University.

Trump Signs Memo Targeting Direct-to-Consumer Pharmaceutical Advertising

President Trump signed a memo to ensure drug ads give fair, balanced, and complete information to protect and inform American consumers.

Trump Runs out of Patience With China, Sharpens His Words

President Donald Trump’s recent remarks targeting China and its allies mark a noticeable shift in tone.

Trump Signs Order Renaming Department of Defense as Department of War

President Donald Trump on Sept. 5 signed an executive order renaming the Department of Defense as the Department of War.

Trump Signs Executive Order Targeting Countries That Unlawfully Detain Americans

President Trump signed an EO on targeting the unlawful detention of American citizens around the world and to facilitate the release of hostages.
spot_img

Related Articles

Popular Categories

MAGA Business Central