At a time when the United States government consistently states that it has to raises taxes in order to raise revenues, a taxpayer has to take a stand back and laugh, particularly with the latest report released Wednesday by the Treasury Department.
According to the report, federal tax revenues reached $3 trillion for the very first time in American history. In total, the U.S. government was able to take $3.020 trillion away from taxpayers, a nine percent increase from last year, and up from $2.1 trillion when President Obama took office.
Even with such an enormous sum of money taken in, the government continues the trend of spending more. Washington spent $3.504 trillion and closed fiscal year 2014 with a deficit of $483 billion – considering this is the government it’s likely a higher number.
The Treasury refused to highlight the historical revenues, but rather about the Obama administration’s deficit reductions.
“The president’s balanced approach to deficit reduction has made our tax code more fair, reduced spending and made critical investments to help drive U.S. competitiveness and growth,” said Treasury Secretary Jack Lew in a statement. “The president’s policies and a strengthening U.S. economy have resulted in a reduction of the U.S. budget deficit of approximately two-thirds — the fastest sustained deficit reduction since World War II.”
The Treasury noted that the increase in tax receipts originated from an improved economy and the expiration of the Bush tax cuts.
Nevertheless, the substantial amount of taxes came at a price: it took from the productive private sector and placed it in the hands of bureaucrats and politicians, a terrible combination that has been the cause of much of the nation’s ailments.
Indeed, the amount of taxes that are stolen from everyday citizens is the result of big government. Of course the government needs to take coercive and excessive action to maintain its empire and be involved in every facet of our daily lives.
This is certainly a great reminder of what Milton Friedman wrote: “They think that the cure to big government is to have bigger government… the only effective cure is to reduce the scope of government – get government out of the business.”
Unfortunately, as Friedman also pontificated, governments never learn, only the people do. The first half of that statement is correct, but it’s not so definite regarding the second half. It’s the people who still elect the frauds that are currently sitting in public office and wreaking havoc on the general public.
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