Politicians in Washington are looking for more revenue, even as more and more money pours into Federal coffers.
Tax revenues rose for the fourth year in a row and reached the third-highest total in U.S. history: $2.45 billion in 2012. That total is surpassed only by revenues from 2007 and 2008. And this comes despite an anemic rate of growth mired below 2 percent.
Despite the growth, the deficit remained at $1.1 trillion. President Barack Obama can now claim the four largest deficits in modern history.
Democrats’ plans to combat the deficit consist of allowing the so-called George W. Bush tax cuts to expire at the end of 2012 for those making more than $250,000. But according to the Joint Tax Committee, giving Obama all the tax increases he wants will net only $82 billion in extra revenue per year — if the higher taxes don’t slow down the economy. That would still leave the deficit above $1 trillion.
