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Trivia Tidbit Of The Day: Part 327 -- Taxes.

Corporate Tax Collections = Smaller Deficits-

The Tax Foundation has some more good news about the economy:

Corporate tax collections totaled $278 billion, up from $195 billion in 2004 and $139 billion in 2003 (all in real 2005 dollars). That represents a real rate of growth of over 100 percent over two years. A new study by the Congressional Budget Office (CBO) shows this trend has continued into 2006. As of April 2006, corporate income tax receipts are up nearly 30 percent over receipts during the same period in 2005.

The recent surge in corporate income tax collections has substantially increased corporate tax collections as a percentage of Gross Domestic Product (GDP) from 1.2 percent of GDP in FY 2003 to 1.6 percent in FY 2004 and, most recently, 2.3 percent in 2005. By this measure, corporate tax collections in 2005 were higher than in any year since 1980.

Additionally, as a percentage of Total Federal Receipts, corporate taxes in 2005 were at their highest level (12.9%) since 1979 (14.2%).

What this means is that projected deficits are shrinking. We could easily see federal budget surpluses in the next couple of years, in spite of surging spending levels and because of lower taxes.

Previous Trivia Tidbit: The Economy Is Absolutely Smoking, But For Political Reasons, Some Won't Admit It.

Posted by Will Franklin · 8 May 2006 09:46 PM

Comments

Posted by: Zsa Zsa at May 9, 2006 05:32 AM