AmiSight 10/14: Despite COVID-19, U.S. Sees the Biggest Revenue Surge in 44 Years
Thought the government’s revenue would have gone down in the wake of the pandemic? Think again. Politico reports that revenues have gone up by 18 percent since last year. Even after several tax cuts, federal tax receipts are increasing. So, what’s driving this increase? Taxes on the top corporate and personal earners. COVID-19 hit the lower earners the hardest, while higher earners continued to do well. Corporate receipts increased the most, thanks to an unexpected rise in profits. This corporate tax haul is one of the biggest this country has seen.
In addition to corporate taxes, the Congressional Budget Office estimates that individual income taxes were also up 27.5 percent. Again, the top 10 percent of earners contribute the most (about 80 percent).