Economy

Americans are paying the highest taxes and largest share of GDP ever

Published

4 weeks ago

May 27, 2022

“People are now paying more in total income taxes than ever, even considering the 2017 tax cuts signed by former President Donald Trump. And they will be paying significantly more when elements of those tax cuts expire in 2025” according to the Congressional Budget Office (CBO).

The Washington Examiner reports on the CBO’s analysis that the Treasury expects a 28% surge in individual income taxes this year. The analysis was presented to Congress on Thursday, and explained more income taxes are ahead in 2025 after the Trump tax cuts expire.

“Receipts from individual income taxes — the largest source of federal revenues — rose sharply in 2021 and are projected to do so again in 2022 as the economy recovers from recession and temporary provisions enacted in response to the pandemic expire. Those receipts are projected to rise again after 2025 because of the scheduled expiration of some provisions of the 2017 tax act,” read the report.

“In 2021, receipts from individual income taxes totaled $2.0 trillion, or 9.1% of GDP. Under current law, and on the basis of receipts observed through late April of this year, CBO expects individual income tax receipts to rise by 28% in 2022, to $2.6 trillion. At 10.6% of GDP, that total is expected to be the highest amount of individual income tax receipts recorded since 1913, when ratification of the Sixteenth Amendment authorized the federal government to begin collecting income taxes,” said the report.

Additionally, the CBO stated that the overall federal revenue is expected to reach a record $4.8 trillion in 2022, a 19% one-year increase. “The strong revenue growth in 2021 and 2022 results mostly from large increases in collections of individual income taxes. Total revenues in 2022 are projected to equal 19.6% of the nation’s gross domestic product — the largest annual revenues relative to the size of the economy since 2000.”

Economy

Chair of Federal Reserve debunks Biden: ‘Inflation was high before, certainly before the war in Ukraine broke out’

Published

2 days ago

June 23, 2022

Sara Carter Staff

As recently as Monday the White House and Biden administration still has the audacity to blame inflation and high gas prices on Russian President Putin and his invasion of Ukraine.

However, while testifying Wednesday before the Senate Banking Committee, Chair of the Federal Reserve Jerome Powell debunked the administration’s false blame.

With the biggest single driver of inflation being Putin’s war against Ukraine, @POTUS has taken action to blunt the impact of Putin’s Price Hike for families.

— The White House (@WhiteHouse) June 20, 2022

The White House tweeted “with the biggest single driver of inflation being Putin’s war against Ukraine, @POTUS has taken action to blunt the impact of Putin’s Price Hike for families.”

No matter how many times the the White House clicks together its red sparkly shoes and says “Putin”, the fact remains that inflation, the supply chain and prices we’re hurting the American people long before Putin began his conquest of Ukraine.

During his testimony, Republican Tennessee Senator Bill Hagerty asked Powell if “Putin’s price hike” was to blame.

“I realize there are a number of factors that play a role in the historic inflation that we’re experiencing: supply chain disruptions, regulations that constrain supply, we’ve got rising inflation expectations and excessive fiscal spending, but the problem hasn’t sprung out of nowhere,” Hagerty said.

“In January of 2021, inflation was at 1.4%. By December of 2021, it had risen to 7% — a fivefold increase.”

“Since the war in Ukraine began in late February, the rate of inflation has risen incrementally another 1.6% to a current level of 8.6%,” he continued. “Given how inflation has escalated over the past 18 months, would you say that the war in Ukraine is the primary driver of inflation in America?”

“No,” Powell said. “Inflation was high before, certainly before the war in Ukraine broke out.”