Tax Revenues Went Up After The Across-The-Board Bush Tax Cuts.

FY 2001

Non-defence spending:  1.655 trillion dollars

Defence:  305 billion dollars

Revenue:  1.99 trillion dollars (including SS)

Total spending:  1.96 trillion dollars

Deficit:  133.29 billion dollars (without trust funds)

GDP:  13.1268 trillion dollars

Revenue-to-GDP:  15.16%

Spending-to-GDP:  14.93%

Deficit-to-GDP:  1.24%

National Debt:  5.8075 trillion dollars

Debt-to-GDP:  53.84%

FY 2002: 

Non-defence spending:  1.6823 trillion dollars

Defence:  328.7 billion dollars

Revenue:  1.853 trillion dollars

Total spending:  2.011 trillion dollars

Deficit:  157.8 billion dollars

GDP:  10.6423 trillion dollars

Revenue-to-GDP:  17.41%

Spending-to-GDP: 18.89%

Deficit-to-GDP:  1.483%

National Debt:  6.4057 trillion dollars

Debt-to-GDP: 60.19%

FY 2003

Non-defence spending:  1.3774 trillion dollars

Defence:  404.9 billion dollars

Revenue:  1.7823 trillion dollars

Total spending:  2.159 trillion dollars

Deficit:  374 billion dollars

GDP:  11.1421 trillion dollars

Revenue-to-GDP:  15.99%

Spending-to-GDP:  19.38%

Deficit-to-GDP: 3.39%

National Debt:  6.7832 trillion dollars

Debt-to-GDP:  60.88%

FY 2004

Non-defence spending:  1.836 trillion dollars

Defence:  455.9 billion dollars

Revenue:  1.880 trillion dollars

Total spending:  2.292 trillion dollars

Deficit:  413 billion dollars

GDP:  11.8678 trillion dollars

Revenue-to-GDP: 15.84%

Spending-to-GDP:  19.31%

Deficit-to-GDP:  3.48%

National Debt:  7.596 trillion dollars

Debt-to-GDP:  64.01%

FY 2005

Non-defence spending:  1.976 trillion dollars

Defence:  495.30 billion dollars

Revenue:  2.153 trillion dollars

Total spending:  2.472 trillion dollars

Deficit:  317 billion dollars

GDP:  12.6384 trillion dollars

Revenue-to-GDP:  17.04%

Spending-to-GDP:  19.56%

Deficit-to-GDP:  2.52%

National Debt:  8.1708 trillion dollars

Debt-to-GDP:  64.65%

FY 2006

Non-military defence:  2.119 trillion dollars

Defence:  535.9 billion dollars

Revenue:  2.407 trillion dollars

Total spending:  2.655 trillion dollars

Deficit:  248 billion dollars

GDP:  13.3989 trillion dollars

Revenue-to-GDP:  17.96%

Spending-to-GDP:  19.82%

Deficit-to-GDP:  1.85%

National Debt:  8.6802 trillion dollars

Debt-to-GDP:  64.78%

FY 2007

Non-defence spending:  2.2026 trillion dollars

Defence:  527.4 billion dollars

Revenue:  2.568 trillion dollars

Total spending:  2.728 trillion dollars

Deficit:  163 billion dollars

GDP:  14.0776 trillion dollars

Revenue-to-GDP:  18.24%

Spending-to-GDP: 19.38%

Deficit-to-GDP: 1.86%

National Debt:  9.2298 trillion dollars

Debt-to-GDP:  65.67%

FY 2008

Non-defence spending:  2.488 trillion dollars

Defence:  494.4 billion dollars

Revenue:  2.524 trillion dollars

Total spending:  2.9825 trillion dollars

Deficit:  438 billion dollars

GDP:  14.4414 trillion dollars

Revenue-to-GDP:  17.48%

Spending-to-GDP: 20.65%

Deficit-to-GDP:  3.18%

National Debt:  10.6998 trillion dollars

Debt-to-GDP:  74.01%

FY 2009

Non-defence spending:  3.0234 trillion dollars

Defence:  494.3 billion dollars

Revenue:  2.105 trillion dollars

Total spending:  3.5177 trillion dollars

Deficit:  1.786 trillion dollars

GDP:  14.119 trillion dollars

Revenue-to-GDP:  14.91%

Spending-to-GDP: 24.92%

Deficit-to-GDP: 12.91%

National Debt:  12.13497 trillion dollars

Debt-to-GDP:  85.95%

FY2010

Non-defence spending: 2.793 trillion dollars

Defence: 663.7 billion dollars

Revenue: 2.1627 trillion dollars

Total Spending: 3.4562 trillion dollars

Deficit: 1.295 trillion dollars

GDP:  14.5082 trillion dollars

Revenue-to-GDP:  14.91%

Spending-to-GDP:  23.83%

Deficit-to-GDP:  8.54%

National Debt:  13.5616 trillion dollars

Debt-to-GDP:  93.48%

Sources:

Center for Defense Information

Tax Policy Centre

Urban Institute

Brookings Institution

http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=200

http://www.usgovernmentrevenue.com/yearrev1981_0.html#usgs302

http://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo5.htm

http://www.usgovernmentspending.com/downchart_gs.php?year=1950_2010&view=1&expand=&units=p&fy=fy10&chart=G0-fed&bar=0&stack=1&size=m&title=Federal%20Deficit%20As%20Pct%20GDP&state=US&color=c&local=s

Let’s take FY2005:

In 2005 ALONE, there was a 15% INCREASE in revenue, as is stated in this report from the OMB:

http://www.fms.treas.gov/mts/mts0305.pdf

In 2005, the New York Times reported a dramatic FIFTEEN PERCENT increase in federal tax revenues:

http://www.nytimes.com/2005/07/13/business/13deficit.html

Oh, lookie, I found another left-leaning news organisation that confirms revenues by 15% in 2005. From WaPo:

http://www.washingtonpost.com/wp-dyn/content/article/2005/05/04/AR2005050402134.html

With regard to capital gains tax cuts, even factcheck.org acknowledges that “capital gains tax receipts did increase greatly from 2003 to 2006.”

http://www.factcheck.org/taxes/supply-side_spin.html

In 2006, the CBO released the tax revenue numbers. Federal tax revenues surged in the first eight months of 2005 fiscal year by  187 billion dollars. That represented a 15.4% rise in federal tax receipts over 2004. Individual and corporate income tax receipts have exploded like a cap let off a geyser, up 30% in the two years since the tax cut.

In a letter written by Peter R. Orszag on May 18, 2007, ( Orszag was Director of CBO “Congressional Budget Office” at the time), he stated, “receipts as a share of GDP rose from 16.5% to 18.4 %.” The period was from 2003- 2006. Orszag later became Director of the Office of Management and Budget for Obama. I assume he is not a Tea Partier? LOL. ( BTW, he recommended that we keep ALL the Bush tax cuts, even for the rich, for the next 2 years.) Orszag also stated in the same letter, “Total Federal revenues grew by about  625 billion dollars, or 35%, between fiscal year 2003 and fiscal year 2006? and then continued, “Had revenues grown at the same rate as the overall economy between 2003 and 2006, Federal receipts would have increased by only  373 billion dollars. The other  252 billion dollars of the actual increase in revenues represents growth in excess of GDP growth.”

http://www.cbo.gov/ftpdocs/77xx/doc7718/EffectiveTaxRates.pdf

You also may want to check, “United States Department of the Treasury, Fact sheets – Taxes, History of the U.S.Tax System” or treasurydirect.gov.

 

Comparing tax revenues in the fourth fiscal year after the end of each of the past three recessions shows nearly equal tax revenues of:

    * 18.4% of GDP in 1987,

    * 18.5% of GDP in 1995, and

    * 18.4% of GDP in 2006.

May 18, 2007

The Honorable Kent Conrad

Chairman

Committee on the Budget

United States Senate

Washington, DC 20510

Dear Mr. Chairman:

In response to your letter of May 11, 2007, the Congressional Budget Office (CBO) has reviewed the available data and analyzed the sources and underlying causes of the growth in revenues since 2003. This analysis shows that the overall increase in revenues as a share of gross domestic product (GDP) since 2003 is disproportionately accounted for by increases in corporate income tax revenues.

Total federal revenues grew by about 625 billion dollars, or 35 percent, between fiscal year 2003 and fiscal year 2006. CBO’s analysis of that increase in revenues since 2003 is necessarily preliminary because relevant data are not yet fully available.  CBO examined the available data using the commonly employed method of analyzing the sources of revenue growth as a percentage of GDP. Had revenues grown at the same rate as the overall economy between 2003 and 2006, federal receipts would have increased by only 373 billion dollars. The other 252 billion dollars of the actual increase in revenues represents growth in excess of GDP growth. As a result, receipts as a share of GDP rose from 16.5 percent in 2003 to 18.4 percent in 2006, an increase of 1.9 percentage points.

Sources of Growth in Tax Revenues

That increase of 1.9 percentage point of GDP can be traced to changes in different types of revenues. The bulk of the revenue increase was associated with corporate income taxes: Revenues from corporate income taxes rose from 1.2 percent of GDP in 2003 (their lowest level since 1983) to 2.7 percent in 2006 (their highest level since 1978). That increase of 1.5 percentage points of GDP in corporate income tax revenues accounts for the bulk of the overall 1.9 percentage point rise in revenues. Revenues from individual income taxes increased 0.6 percentage points, from 7.3 percent of GDP in 2003 to 8.0 percent in 2006. And revenues from taxes other than corporate and individual income taxes were relatively stable over the period from 2003 to 2006, slipping 0.2 percentage points, from 7.9 percent to 7.7 percent of GDP.

Corporate Income Tax Revenues. Roughly two-thirds of the increase of 1.5 percentage points in corporate income taxes relative to GDP can be attributed to increases in corporate profits, according to current measures in the national income and product accounts (NIPAs). With the effects of legislation excluded, NIPA profits before taxes increased from about 9 percent of GDP in 2003 to about 13 percent in 2006, which, at prevailing tax rates, boosted corporate revenues by roughly 1.0 percentage point relative to GDP. In addition, legislation directly increased corporate tax receipts by 0.2 percentage points of GDP...

Continue reading:

http://www.cbo.gov/ftpdocs/81xx/doc8116/05-18-TaxRevenues.pdf

Before any Bush tax cuts, 27.2% of Americans did not pay Federal income taxes.

After his 2001 tax cuts, 30.1% of Americans did not pay Federal income taxes.

After his 2003 tax cuts, 31.8% of Americans did not pay Federal income taxes.

After his 2004 tax cuts, 32.4% of Americans paid no Federal income taxes.

In 2007, 38% of Americans paid no Federal income taxes.

In 2008, 49% of Americans paid no Federal income taxes.

In 2009, 43% of Americans paid no Federal income taxes.

In 2010, 47% of Americans paid no Federal income taxes.

The Bush tax cuts took 3,000,000 low income people completely off the tax rolls.

Before the Bush tax reforms, the top 20% of earners paid 77% of all income tax.

After the Bush tax cuts the top 20% of income earners in the US pays 81% of the income tax revenue.

http://www.treas.gov/press/releases/reports/revenue%20growth.jpg

You would think that Liberals would applaud a situation where the GDP grew, corporations paid more in taxes, and millions of middle class Americans were relieved of their patriotic duty to pay income taxes.  You would think.  But, of course, we are talking about Progs.