Wednesday, October 15, 2014
US Economy.
US Treasury reported that tax receipts in 2014 grew by $247 billion, or 9%, because of an improving economy as well as the expiration of some tax provisions and higher tax rates on high-income individuals.
The economy not only bolstered tax receipts from wages and payroll taxes, it also boosted corporate profits and therefore business tax revenue.
On the spending side, outlays grew by just $50 billion or 1%.
A big reason for the modest growth in spending was controlled dollars going to Medicare, Medicaid and Social Security. In addition, spending in many other areas of the budget fell. These included defense, homeland security, justice, unemployment benefits, and housing programs.
The drop in the 2014 deficit is the fifth consecutive annual decline. That trend has come as economic stimulus programs to counter the damage of the financial crisis dried up and Congress implemented broad spending cuts known as the sequester. It was also spurred by changes in tax rates for high-income households.
Great improvement and perhaps a surplus by the end of the coming 2 years.
Just a thought.
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