Your Government is Spending More Money it Doesn’t Have

Your Government is Spending More Money it Doesn’t Have

The federal government recorded an estimated budget deficit of $588 billion in fiscal year (FY) 2016 just ended in June.

The deficit exceeds the $149 billion deficit recorded in FY 2015 ended June 30 of that year.

The Congressional Budget Office (CBO) stated on October 7 the deficit equaled some 3.2% of gross domestic product (GDP) compared to 2.5% of GDP in FY 2015.

Revenues increased by $19 billion (or less than 1%).

Payroll taxes collections rose by $50 billion with individual income tax collections increasing $6 billion, a total increase of 2%.

Income tax refunds increased by $17 billion (or 7%), which reduced net receipts.

Corporate income taxes were $44 billion (or 13%) lower than in FY 2015 indicating a precipitous slowing of the economy.

The rate of government deficit spending is increasing at a rate faster than the economy can maintain with the current year to year increase being 394%, this despite what the current administration states to the contrary.

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Our emphasis at Muffoletto & Company is to provide you the proper guidance and understanding of the system so that you avoid taxes to the extent that the law allows.

Should you have questions relating to these matters, tax, financial, and accounting issues, give us a call at (818) 346-2160.

You can also visit us on the web at www.petemcpa.com!