$2,883,250,000,000: Federal Taxes Set Record Through August; $19,346 Per Worker; Feds Still Run $530B Deficit
By Terence P. Jeffrey • Investor’s Business Daily
The federal government raked in a record of approximately $2,883,250,000,000 in tax revenues through the first eleven months of fiscal 2015 (Oct. 1, 2014 through the end of August), according to the Monthly Treasury Statement released Friday.
That equaled approximately $19,346 for every person in the country who had either a full-time or part-time job in August.
It is also up about $198,425,330,000 in constant 2015 dollars from the $2,684,824,670,000 in revenue (in inflation-adjusted 2015 dollars) that the Treasury raked in during the first eleven months of fiscal 2014. Continue reading
by Eric Boehm • Watchdog.org
The IRS fined more than 7.5 million Americans who didn’t have health insurance in 2014, even as Obamacare subsidies flowed to people who didn’t even exist.
The Treasury Department reported last week the number of Americans who faced fines because of the Affordable Care Act’s individual mandate was significantly higher than the Obama administration expected. For 2014, the IRS projected that roughly 6 million would face fines, but the final total was 1.5 million higher.
It was the first year in which buying health insurance was made mandatory under the ACA, with penalties of $95 or 1 percent of total income – whichever was higher – for people who did not comply. Continue reading
Obama goes where the money is to pay for ‘free’ education programs – your savings account.
by Glenn Harlan Reynolds • USAToday
Bank robber Willie Sutton is said to have explained his career this way: “That’s where the money is.” Whether Sutton ever really said that, it’s an aphorism that, according to Bloomberg’s Megan McArdle, explains President Obama’s plans to go after middle class assets like 529 college savings plans and home appreciation.
Though millions of Americans have been putting money into “tax free” 529 plans to save for their children’s increasingly expensive college educations, President Obama would change the law so that withdrawals from the plans to fund college would be taxed as ordinary income. So while you used to be able to get a nice tax benefit by saving for college, now you’ll be shelling out to Uncle Sam every time you withdraw to pay for Junior’s dorm fees.
This doesn’t hurt the very rich — who just pay for college out of pocket — or the poor, who get financial aid, but it’s pretty rough on the middle– and upper–middle class. In a double-whammy, those withdrawals will show up as income on parents’ income tax forms, which are used to calculate financial aid, making them look richer, and hence reducing grants. Continue reading
Despite his memory lapses, the ethical problems related to his work on Obamacare are plain.
by John Fund • National Review Online
An old Soviet joke had men carrying briefcases marching alongside tanks and soldiers in a Kremlin parade. “Why are those men in a military parade?” a boy innocently asks his father. He replies, “Those are the economists. They are the most dangerous of all.”
MIT economist Jonathan Gruber’s factually impoverished testimony on Obamacare didn’t get nearly the attention it should have, as congressional Democrats cleverly decided to release a report on CIA torture abuses on the same day. Continue reading
President Barack Obama says it’s “not fair” and “not right” for U.S. companies to set up overseas to avoid taxes. Except when it benefits him politically.
The president calls these companies “corporate deserters.” He says they are “still using all the services and all the benefits of effectively being a U.S. corporation,” but have “just decided” to go through the “paper exercise” of corporate inversion, in which U.S. companies with foreign subsidiaries can reduce their tax bill by becoming foreign companies with U.S. subsidiaries.
“I think it’s something that would really bother the average American,” he said recently, “the idea that somebody renounces their citizenship but continues to entirely benefit from operating in the United States of America just to avoid paying a whole bunch of taxes.”
Many companies are planning to flee the country because the United States of America has the highest corporate tax rate — 35 percent — in the developed world. It simply makes sense for them to do so. They are obligated to shareholders to be as competitive and profitable as possible. Continue reading
The government is making you work longer and longer to cover its hefty costs. It took Americans 186 days of work to pay for their massive government.
Just in time for American Independence Day, the folks over at Americans for Tax Reform have released their annual Cost of Government Day findings – and the news is not good.
According to the annual study, which the group began to compile in the early ’90s, an American would on average have to work for 186 days into the calendar year before they earned enough to pay their share of government’s total cost at all levels – not just for the spending and borrowing, but for the cost the regulatory burden imposes as well.
For 2014, Cost of Government Day falls on July 6, the sixth consecutive year it comes in the seventh month of the year. Prior to President Barack Obama coming to office, the group said in a release, the latest date it had ever fallen was June 27. Continue reading
Federal tax revenues continue to run at a record pace in fiscal 2014, as the federal government’s total receipts for the fiscal year closed April at $1,735,030,000,000, according to the Monthly Treasury Statement.
Despite this record revenue, the federal government still ran a deficit of $306.411 billion in the first seven months of the fiscal year, which began on Oct. 1, 2013 and will end on Sept. 30, 2014.
In the month of April itself, which usually sees the peak tax revenues for the year, the federal government ran a surplus of $106.853 billion. While taking in $414.237 billion in total receipts during the month, the government spent $307.383 billion.
In fiscal 2013, the federal government also ran a one-month surplus in April, taking in $406.723 billion during the month and spending $293.834 billion, leaving a surplus of $112.889 billion. Continue reading
How often have you heard a Democrat prattle on and on about how well Barack Obama has done with the economy, given the mess he inherited? Usually, it’s some version of, “Things are getting better, but the economy the President started with was so awful, so he’s done as well as anyone could expect.”
When Ronald Reagan took over from Jimmy Carter in ’81, things were actually worse economically compared to when Obama took over from George W. Bush in ’08. Continue reading
by Grover Norquist
With the arrival and passing of yet another April 15th Tax Day, the federal government will consume 20.5 percent of America’s total income this year. It’s not as bad as in France or Greece, but somewhat worse than when we formed these United States. When we were Colonies under the British, the average tax burden on American colonists was 2 percent. That was considered unbearable, and the revolution was on.
There has been some slippage over the years. The 16th Amendment allowing the income tax opened the door to truly European, supersized government. Continue reading
World economic freedom has reached record levels, according to the 2014 Index of Economic Freedom, released Tuesday by the Heritage Foundation and The Wall Street Journal. But after seven straight years of decline, the U.S. has dropped out of the top 10 most economically free countries.
For 20 years, the index has measured a nation’s commitment to free enterprise on a scale of 0 to 100 by evaluating 10 categories, including fiscal soundness, government size and property rights. These commitments have powerful effects: Countries achieving higher levels of economic freedom consistently and measurably outperform others in economic growth, long-term prosperity and social progress. Botswana, for example, has made gains through low tax rates and political stability. Continue reading
Here comes the ObamaCare tax bill.
The cost of President Obama’s massive health-care law will hit Americans in 2014 as new taxes pile up on their insurance premiums and on their income-tax bills.
Most insurers aren’t advertising the ObamaCare taxes that are added on to premiums, opting instead to discretely pass them on to customers while quietly lobbying lawmakers for a break.
But one insurance company, Blue Cross Blue Shield of Alabama, laid bare the taxes on its bills with a separate line item for “Affordable Care Act Fees and Taxes.” Continue reading
by Arthur Laffer
In June of 2006, I deserted my long-time friend and love of my life, California, for the unknown venue of Tennessee. The push and the pull of the two locations are pretty obvious — taxes. Tennessee, like Texas, has no state income tax, no state capital gains tax, lower property taxes, lower workers’ compensation costs and roughly the same sales tax rate. California, on the other hand, is just simply tax- and fee-crazy.
But in spite of all the tax, fee and regulatory reasons for leaving California, I was deeply concerned that I would be stranded in an uneducated, lawless morass of tobacco-chewing Neanderthals driving old clunkers on dirt roads where churches were on every street corner and there wasn’t a hospital to be found. Continue reading
by John Fund
Amid all the attention paid to the government shutdown — more of a “slimdown,” as 83 percent of the government remains open — few people noticed that last Friday, October 4, marked the 100th anniversary of the federal income tax. The size and intrusiveness of the federal government that is at the heart of today’s shutdown would never have been possible without the income tax.
For a century and a quarter, the United States avoided an income tax. Thomas Jefferson warned against such “internal” taxes, saying that under the British they had “filled our land with officers and opened our doors to their intrusions.” Until the early 20th century, a small federal government relied on import duties and taxes on alcohol and tobacco for most of its revenue. Continue reading
Since getting the boot from the United States Senate, Bob Bennett has been writing a weekly column in the Deseret News, one of Utah’s two daily newspapers (and the only one that doesn’t periodically chastise its readers for being too stupid to understand its editorial positions). Occasionally ex-Senator Bennett reminds us that he is a very smart man with many good ideas. Occasionally he reminds us why the voters got rid of him. He does so in his op-ed of Monday, 7 October.
In his short essay, which you can read yourself here, Bennett tells us why it is important not to default on commitments made to those who have lent the U.S. money, and indeed it is. He neglects to mention the spending that made this borrowing necessary – spending to which he was a major contributor. When Bennett took office, the national debt stood at about $6 trillion. By the time he left it had grown to about $14 trillion. During his 18 years in the Senate, Bob Bennett voted for 132 out of 133 appropriations bills on final passage in the Senate. Appropriations bills are the bills that actually spend the money. The size of this debt and its growth trend is what should concern us far more than today’s fight. The Congressional Budget Office projects that by 2038, public debt will reach 100% of GDP. Continue reading
Debt-ridden California needs every cent it can squeeze out of its taxpayers. The government unions that control the state through the Democratic Party are the highest paid state government employees in the nation. Despite being near the bottom in student academic achievement, California is near the top on per-pupil spending. And that $68 billion high-speed train to nowhere that the state is building in the Central Valley won’t pay for itself.
When a state appeals court recently ruled that a 19-year-old tax break for small businesses was unconstitutional, the state’s Franchise Tax Board began going after small business investors for an estimated $120 million in back taxes. “A lot of them don’t have that money anymore. Its been reinvested,” California’s National Federation of Independent Businesses Legislative Director Ken DeVore told CBS News. “It sends a message that you can’t trust government. If you comply in good faith with the rules, they can go back and penalize you.” Continue reading