Real federal income tax revenues down 1/3 from the Clinton era

[Hannah Bell]

Federal tax revenues in 2010 were much smaller than in 2000. Total individual income tax receipts fell 30 percent in real terms. Because the population kept growing, income taxes per capita plummeted.

Individual income taxes came to just $2,900 per capita in 2010, down 36 percent from more than $4,500 in 2000. Total income taxes and income taxes per capita declined even though the economy grew 16 percent overall and 6 percent per capita from 2000 through 2010. Corporate income tax receipts fell 27 percent and declined 34 percent per capita, even though profits boomed, rising 60 percent.

Payroll taxes increased slightly overall, but slipped per capita because the nation's population grew five times faster than the number of people with any work. The average wage also declined slightly.

You read it here first. Lowered tax rates did not result in increased tax revenues as promised by politician after pundit after professional economist.

http://www.tax.com/taxcom/taxblog.nsf/Permalink/UBEN-8EL2Y8?OpenDocument

[xchrom]

1. recommend

[TBF]

2. Recommend. K&R nt

[geckosfeet]

3. Well - actually we have read it in many places.

"Lowered tax rates result in increased tax revenues"

The people that bought that one are delusional. The people that sold it are criminal.

Breaking News: Tax Revenues Plummeted

You read it here first. Lowered tax rates did not result in increased tax revenues as promised by politician after pundit after professional economist. And even though this harsh truth has been obvious from the official data for some time, the same politicians and pundits keep prevaricating. Some of them even say it is irrelevant that as a share of GDP, income tax revenues are at their lowest level since 1951, when Harry S. Truman was president.

No matter how many times advocates of lower tax rates said it, tax rate cuts did not pay for themselves, did not spur economic growth, did not increase jobs, and did not make America better off.

Now that the news has been broken, let's see how many political leaders start speaking facts instead of fairy tales. And let's also watch to see how many Washington reporters, news anchors, talk show guests, and syndicated columnists use the actual figures. It's called holding politicians accountable, and it used to be a mainstay of journalism, where the first rule is to check it out and the second is to cross-check until you know what is going on and can give context.

The tables accompanying this column should be easy enough to read and turn into graphics for television, newspapers, and magazines, not to mention all those blogs and digital journals.

Breaking News: Tax Revenues Plummeted

Excellent pdf link in the article.

Tax Revenues Fell, Per Capita Revenues Plummeted, and Economic Growth Became Anemic After the Bush Tax Cuts, Now in Effect for Two More Years.

America's Population Grew Five Times Faster Than Jobs From 2000 to 2009, But in 2010 Dollars Wages Per Capita Declined, the Opposite of the Politicians' Promises That Lower Tax Rates Would Make Everyone Better Off.

[hack89]

4. How do you explain 2007?

when tax revenues were the same as 2000? There was also a steady increase in tax revenues from 2003 to 2007. It is almost like revenues go down in recessions and go up in recoveries. Who would have thought.


http://www.usgovernmentrevenue.com/downchart_gr.php?year=2000_2015&view=1&expand=&units=p&fy=fy12&chart=F0-total&bar=0&stack=1&size=l&title=&state=US&color=c&local=s

[PassingFair]

5. Um...so 1 - 1 DOESN'T = 2?

I'm shocked.

[madinmaryland]

6. The point of the tax cuts was NEVER to increase tax revenues.

The tax-cutting Norquists goals were to shrink the size of government, rolling it back to a pre-1932 style of government.

[moondust]

7. Revenue problem.

Pay no attention to Republicans and others who say the current mess is not a revenue problem.

How to fix it? Ask Bill Clinton.

[hack89]

8. Bush generated more revenue in 2007 than Clinton ever did.

http://www.usgovernmentrevenue.com/downchart_gr.php?year=1980_2015&view=1&expand=&units=b&fy=fy12&chart=F0-total&bar=0&stack=1&size=l&title=&state=US&color=c&local=s


Maybe it is not so simple?

[moondust]

9. "fell 30 percent in REAL terms."

Corporate income tax receipts fell 27 percent and declined 34 percent per capita, even though profits boomed, rising 60 percent.

Payroll taxes increased slightly overall, but slipped per capita because the nation's population grew five times faster than the number of people with any work. The average wage also declined slightly.

Not to forget that Chinese, Indian, and Mexican workers do not pay U.S. income taxes.

I'm far more inclined to believe the Pulitzer Prize-winning tax analyst and teacher, Mr. Johnston, than your "writer and conservative," Mr. Chantrill.


To my previous point, Bill Clinton is the only modern President to take a big deficit and turn it into a surplus.

[Hannah Bell]

10. actual income tax revenues + inflation adjustment for 2009 $$$ = "real" dollars

Income tax revenues increased every year of the Clinton
presidency.

In contrast, since the Bush tax cuts were put in place,
revenue has been lower than the previous year in 6/10 of
years.

Only at the peak of the mortgage bubble were revenues higher
than in 2000, and only in 2007 were they significantly higher.

We would expect Bush's revenues to be somewhat higher than
clinton's, as the economy grew.  What is surprising is that in
half of the tax cut years revenues were lower than they were
in 1997.


Clinton tax hikes = 1993

1992  715.67 = $1080.75 

1993  777.01 = $1139.21 (+)
1994  840.57 = $1201.17 (+)
1995  916.58 = $1277.84 (+)
1996 1007.09 = $1363.13 (+)
1997 1112.65 = $1480.83 (+)
1998 1227.30 = $1607.70 (+)
1999 1287.39 = $1642.08 (+)
2000 1459.47 = $1800.35 (+)


Bush tax cuts = 2001, 2003


2001 1407.04 = $1708.34 (-)
2002 1237.37 = $1467.13 (-)
2003 1156.25 = $1345.38 (-)
2004 1247.26 = $1404.92 (+)
2005 1491.03 = $1624.28 (+)
2006 1719.57 = $1827.55 (+)
2007 1883.54 = $1947.29 (+)
2008 1812.53 = $1805.28 (-)
2009 1369.13 = $1369.13 (-)
2010 1390.46 = <$1390.46 (-)


PS:  The chart you linked illegitimately includes social
security revenues.


and as the previous poster noted, per capita tax revenues have
also declined.


bush's tax cuts weren't sold on the basis of them bringing in
additional revenue in 2007 or any one year.  they were sold on
the basis that they would steadily bring in higher revenue
than having higher taxes would.

instead, they've brought in the worst economic crisis since
the great depression.

[FogerRox]

12. Give it up friend, you got pwned

[FogerRox]

11. Median Ind Income peaked during the 90's @ 38k

right now, its about 26k.

Thats a lot less FICA going into Social Security.

A lot less Income tax being paid.

A lot less consumer goods being bought.

You go girl, thanks Hannah Bell, KnR.