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Record Tax Collection Somehow Equals Continuing Debt

Monday, 18 November 2013 08:48 AM Current | Bio | Archive

Recently I wrote about a new record in tax revenue collections set by the Treasury Department. Now that’s old news. The White House Office of Management and Budget now reports that in fiscal 2014 federal tax revenues will exceed $3 trillion for the first time in history.

The exact figure is $3,023,004,000,000 and that colossal amount of money breaks the former inflation–adjusted federal tax revenue record set in 2007, when the total was a mere $2,899,644,380,000 in constant 2013 dollars.

And every dime of it is going flying out the door to be spent on Obama’s “investments” like the brilliant HealthCare.dud, Solyndra, and “shovel ready” stimulus spending projects that have contributed so much to our American way of life.

Getting one’s mind around a figure like that is difficult. If you took 3 trillion dollars and attempted to make a single stack of currency, it would fall over and crush you before you’d made much of a dent in the pile.

But CNSNews.com has a very handy way of thinking about the figure. Tax–and–spend Democrats are collecting almost $30,000 in tax revenue for every full–time worker in the country. (It would be even more if we just counted every full–time worker who still had his health insurance policy.)

For $30,000 that employee could buy a brand new Mazda MX–5 Miata convertible to drive to work. Even better, if you want to buy American, a new Ford Mustang convertible from a company that refused Obama’s taxpayer dollar bailout.

Practical readers could pay for a four–year college education. Impractical readers could match Katie Holmes’ Christmas list for her daughter Suri. Sure it’s silly, but the spending makes as much sense as Obama’s bullet train to nowhere in my home of California.

A two–earner household doubles that figure and represents $60,000 in revenue, which is more than the median household income of $51,017.00 in 2012. (You can see how that figure compares with income under my father here.)

So the question becomes are you getting your money’s worth from this spending? Do you personally see $30,000 in government improving your life?

And frankly even that figure is not all the spending in your name. Even with record revenue, the deficit for 2013 will still be three–quarters of a trillion dollars — an increase of over $70 billion from the year before.

That adds nearly a trillion dollars to the deficit. If our political class won’t do something about this scandal then eventually the laws of economics will. It can’t continue forever.

Michael Reagan is the son of President Ronald Reagan. He is president of The Reagan Legacy Foundation and chairman of the League of American Voters. Mike is an in-demand speaker with
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