Once again, we have proof that the federal government in these United States is too big to fail.
What does a “too big to fail” mean?
Take the federal Treasury Department’s income tax report on Friday (March 10, 2017) to illustrate the point.
Through the first five months of fiscal 2017 (that’d be October 2016 through February 2017), Uncle Sam collected $611.3 billion in individual income taxes. It set a record.
Compare that to a year earlier — the first five months of fiscal 2016, when the feds collected nearly $604.6 billion in individual income taxes.
What’s the difference? A little more than a $6.7 billion increase over year in revenue.
And yet, despite that increase, the Treasury Department still incurred a spending deficit of $349 billion during the first five months of fiscal 2017.
Same story when you consider all taxes combined – corporate income taxes, excise taxes, customs duties, estate taxes, gift taxes, Social Security taxes, payroll taxes, and so-called “miscellaneous receipts.” Total revenue for the first five months of fiscal 2017 amounted approximately to $1.26 trillion. Expenditures during the same period came to about $1.61 trillion, reflecting a revenue shortfall of nearly $349 billion.
Still, Washington continues to hum along. It’s hard to wrap your head around such a survival instinct. If the federal government were a retail business, it would immediately conduct a fire sale.