The boost in receipts narrowed the U.S. budget deficit for the previous 12 months to $460 billion, from $510 billion in March and $499 billion in the prior year. It was the lowest annual deficit since last November and the second lowest since September 2008.
Over the past 12 months, revenues are running 9% above their year-earlier level while spending is running 7% higher.
The figures illustrate how, despite growing unease over income inequality, the taxes that America’s rich are paying on their rising incomes are yielding a windfall for the U.S. Treasury. Payroll taxes rose 6% from a year earlier in April, while other individual taxes, including those on capital gains and self-employment incomes, were up 18%.
So…again…real world results.
If the question is “How do we deal with massive deficits?”, the answer now shown to be a resoundingly good one, “Raise taxes on the wealthy”.
We’ve got quite a bit more room to go on both of these before the problem is solved, as it were, but we know now this is a solid strategy.