President Obama and his fellow Democrats say we need to raise taxes to fix the federal government’s debt and deficit problems, but the federal government just hit a new record for revenues shattering the previous high set in 2007:
The federal Treasury expects to collect a record $2.712 trillion in taxes on Americans and U.S. business this year, shattering the 2007 high of $2.5 trillion in taxes.
Despite the sputtering economy and sustained high unemployment, the fine print in President Obama’s budget belatedly presented Wednesday revealed that the administration expects to take more in taxes than the Congressional Budget Office projects. CBO put the 2013 estimate at $2.708 trillion.
This makes you wonder, if federal tax revenues are hitting records, why would we raise taxes?
Why do we continue to have deficit problems when tax revenues are rising to the point of breaking records?
The answer, of course, is because government spending is growing even faster.