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Office of Gift and Estate Planning

33 East College Street
Hillsdale, MI 49242

Phone: 800-334-8904
Fax: 517-607-2661

estateplanning@hillsdale.edu

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Thursday October 23, 2014

Washington News

Washington Hotline

U.S. Tax Receipts Up 8.9%

For the 2014 fiscal year that concluded on September 30, U.S. tax revenue grew by 8.9% to $3.02 trillion.

This was $247 billion more in tax revenue than the federal government received in 2013. With spending growth of 1% and an 8.9% increase in tax revenue, the deficit declined to $483 billion.

The 2014 deficit was 2.8% of gross domestic product (GDP). Federal revenue grew from 16.7% of the economy in 2013 to 17.5% by 2014. However, even with a lower deficit the national debt will increase to about $18 trillion by December of 2014.

Treasury Secretary Jacob Lew explained that the reduced deficit was “due to a combination of higher receipts and stable outlays” during 2014. The prime increase in tax revenue came from increasing the top individual tax rate to 39.6%, the top capital gain rate to 23.8% and from growth of corporate tax payments.

The tax receipts for fiscal year 2014 increased in almost all categories.

CategoryRevenue (Billions)
Individual Income Tax $1,395B
Corporate Income Tax 321B
Social Security/Medicare Tax 1,024B
Excise Tax 93B
Estate/Gift Tax 19B
Customs Duties 34B
Miscellaneous Tax 135B
Total $3,021B

Editor’s Note: There will be an adjustment in the 2014 deficit numbers. During the November lame duck session, Congress will consider the 53 tax extenders such as the IRA charitable rollover. These are very likely to be passed and made retroactive to January 1. Part of the $25 billion in cost for the tax extenders will be an adjustment for the 2014 deficit number.

Published October 17, 2014

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