The federal government collected record total tax revenues through the first eleven months of fiscal 2017 (Oct. 1, 2016 through the end of August), according to the Monthly Treasury Statement. Through August, the federal government collected approximately $2,966,172,000,000 in total tax revenues. That was $8,450,680,000 more (in constant 2017 dollars) than the previous record of $2,957,721,320,000 in total tax revenues (in 2017 dollars) that the federal government collected in the first eleven months of fiscal 2016. At the same time that the federal government was collecting a record $2,966,172,000,000 in tax revenues, it was spending $3,639,882,000,000—and, thus, running a deficit of $673,711,000,000. Individual income taxes have provided the largest share (47.9 percent) of federal revenues so far this fiscal year. From Oct. 1 through the end of August, the Treasury collected $1,421,997,000,000 in individual income taxes. Payroll taxes provided the second largest share (35.9 percent), with the Treasury collecting $1,065,751,000,000 in these taxes. The $233,631 in corporate income taxes collected in the first eleven months of fiscal 2017 equaled only 8.6 percent of total tax collections. The $21,172,000,000 collected in estate and gift taxes equaled only 0.71 percent of total taxes collected this fiscal year. (Tax revenues were adjusted to constant 2017 using the Bureau of Labor Statistics inflation calculator.)
Americans spent more money on taxes than they did on food and clothing last year, according to data released earlier this week. In an assessment of “Consumer Expenditures” for 2016, the Bureau of Labor Statistics showed the average bill for federal, state and local taxes was $10,489. By comparison, Americans spent $9,006 on food and clothes, with most of that going toward food. CNSNews.com first pointed out the findings. While it may not come as a surprise that American households are shelling out to Uncle Sam, the data showed that bill has risen sharply in recent years — the average tax bill rose 41 percent overall since 2013. According to the BLS, federal income taxes rose from $5,743 to $8,367 in that period. State and local income taxes rose from $1,629 to $2,046. The stats come as President Trump prepares to pressure Congress to pass tax reform. In a Missouri speech on Wednesday, he called for simplifying the system and lowering rates. “This enormous complexity is very unfair,” the president said. “It disadvantages ordinary Americans who don’t have an army of accountants while benefiting deep-pocketed special interests.” According to BLS, the largest expense for Americans in 2016 was on “housing,” costing an average consumer unit $18,886 during the year.
The federal government collected record amounts of both individual income taxes and payroll taxes through the first ten months of fiscal 2017 (Oct. 1, 2016 through the end of July), according to the Monthly Treasury Statement. Through July, the federal government collected approximately $1,312,691,000,000 in individual income taxes. At the same time, it collected $976,278,000,000 in Social Security and other payroll taxes. Prior to this year, fiscal 2015 held the record for individual income tax collections through July. That year, the Treasury collected $1,309,431,860,000 (in constant 2017 dollars) in individual income taxes in the first ten months of the fiscal year. Last year (fiscal 2016), individual income tax collections from October through July dropped to $1,293,490,000,000 (in constant 2017 dollars). This year’s record of $1,312,691,000,000 in October-to-July individual income taxes is $3,259,140,000 more than the 2015’s previous record of $1,309,431,860,000. Before this year’s record $976,278,000,000 in October-through-July payroll tax collections, fiscal 2016 held the record at $948,709,020,000 (in constant 2017 dollars)—or about $27,568,980,000 less than this year. Overall federal tax collections in the first ten months of fiscal 2017 were $2,739,861,000,000. Yet that did not the record for October-through-July total federal tax collections. In the first ten months of fiscal 2015, the Treasury collected $2,741,079,280,000 (in constant 2017 dollars) in total taxes. That was $361,218,280,000 more than this year.
Wow.. For more of this exhausting report, click on the text above.
As President Trump’s administration enters the last half of its first year, U.S. corporations are experiencing their best earnings in 13 years, a report finds. Bloomberg reports that U.S. corporate profits in the second quarter “have beaten estimates at more than three-quarters of the Standard & Poor’s 500 member companies. In every sector, at least half of the companies have surpassed or met expectations, with many also getting a boost from a sinking U.S. dollar.” “Growth was particularly strong in key regions of North America and Europe, where we grew sales greater than twice GDP, as well as throughout Asia-Pacific,” Dow Chief Executive Officer Andrew Liveris said. Europe supported U.S. growth during the first three months of this year, but during the second three months, emerging markets came in strong for U.S. earnings. Mark Luschini of financial service company Janney Montgomery Scott told Bloomberg that multinational corporations are seeing growth and higher earnings in both the U.S. and overseas operations. Bloomberg reported: ” Of the 454 companies in the S&P 500 that have so far reported second-quarter results, 68 percent have beaten analysts’ average estimates for revenue, and 78 percent have topped per-share earnings expectations, according to data compiled by Bloomberg. Earnings rose an average of 9.8 percent, while sales have climbed 5.5 percent.” Indeed, even as U.S. prospects rise, so has that of much of the world’s economy. “More of the global economy is participating in this recovery simultaneously, and that’s what shows up in the top-line results, particularly in technology,” said Jim Paulsen, chief investment strategist at Leuthold Group. The health care and banking sectors have also seen great growth. Analysts expect this growth to continue into the third quarter.
Agreed!! And we look forward to it! 🙂
America’s largest companies are on pace to post two consecutive quarters of double-digit profit growth for the first time since 2011, helped by years of cost-cutting, a weaker dollar and stronger consumer spending. Earnings at S&P 500 companies are expected to rise 11% in the second quarter, according to data from Thomson Reuters, following a 15% increase in the first quarter. Close to 60% of the firms in the index have reported second-quarter results so far. Corporate America’s strong earnings performance comes as several policy initiatives that were expected to help boost companies’ bottom line—corporate-tax cuts and increased government spending on infrastructure—have been sidetracked amid political infighting in Washington, D.C., which culminated with the recent failure of the health-law bill. Even as activity inside the Beltway bogged down, the markets have been on an almost nonstop rally since the election. The S&P 500 is up 16% since early November and 10% this year. “You could argue that the stock-market investor overestimated Trump but underestimated earnings,” said Christopher Probyn, chief economist for State Street Global Advisors. The second-quarter profit gains are spread across industries from Wall Street banks to Detroit’s car factories to Silicon Valley’s software labs. Earnings are expected to decline only in the utilities sector, according to data from Thomson Reuters. Several factors are at work, analysts and economists say. A weaker dollar has made it easier to sell U.S.-made goods overseas and has kept borrowing costs low. U.S. wages have improved enough to help bolster consumer spending without raising employer labor costs so much to dent the bottom line. Companies also continue to reap the fruits of their recent zeal for cutting costs, Mr. Probyn said. “We underestimated some of the cost-cutting and restructuring that has gone on within the various industries; that has permitted earnings to keep doing well.” Sales, too, rose in the quarter, by an expected 5%, the second-biggest increase in more than five years, according to data from Thomson Reuters. The figures reflect actual results for about half the S&P 500 index, and analysts’ estimates for those that had yet to report results as of Friday. On Friday, the Commerce Department reported that gross domestic product rose at a 2.6% rate in the second quarter, up from 1.2% in the first quarter.
And the economy continues to roar on in this new Trump era.. To read the rest of this article from the Wall Street Journal, click on the text above.
The Dow Jones Industrial Average recorded its 23rd all time high of 2017 yesterday closing at 21,532. There have been a total of 120 days where the markets have closed since President Trump’s inauguration on January 20th. The ‘DOW’ has closed at all time highs 23 of those days for nearly 20% or one-fifth of the days the market has been open. The market is up 9% since the inauguration. Since the election on November 8th the DOW has closed at record highs an amazing 40 times! Nearly one-fourth or 24% of the 168 days the markets have closed have been record highs since the November 8th election. The market is up 17% since the election! Americans are benefitting greatly in their 401k’s from the recent change in Administrations. In Obama’s entire first term, the US stock market (DOW) never reached a new closing high. In years 2009, 2010, 2011 and 2012 the DOW never reached a new high once!
Trump making the Stock Market great again! 🙂
U.S. stocks rose toward records, Treasuries rallied and the dollar retreated after Janet Yellen signaled the Federal Reserve won’t rush to tighten monetary policy as inflation remains persistently below target. The Dow Jones Industrial Average closed at a fresh all-time high, technology shares added more than 1 percent and emerging-market equities surged to levels last seen in 2015 as Yellen expressed confidence in the American economy while suggesting inflation rates won’t force the Fed’s hand. The dollar fell versus most major peers, 10-year Treasury yields slid below 2.32 percent and gold futures rose. Oil bounced above $45 a barrel. The Brazilian real strengthened after former President Luiz Inacio Lula da Silva was convicted of graft and money-laundering, while Canada’s dollar rallied on central bank tightening. The statement from Yellen diverted attention from the release of emails by Donald Trump Jr. about his controversial meeting with a Russian lawyer, though concern remains that the latest saga in Washington may be an unwelcome distraction for the Fed seeking to dismantle a decade of monetary stimulus. The Fed chair made no mention of asset prices just a week after her comment that some looked “somewhat rich” added to selling in stocks and bonds. Yellen’s dovish tone came as the Bank of Canada raised interest rates for the first time in seven years even as inflation in the country remains stubbornly sluggish. Central banks around the world have been hinting that the accommodative policies in place for years may no longer be needed amid signs that the global economy is gaining traction.
More great economic news in this Trump era. Making America great again! 🙂