Taxes Up Despite COVID

Taxes Up Despite COVID

( – In March, the federal government collected the highest amount of taxes since 2016. Tax revenues were also the highest on record for the first half of the fiscal year, which runs from October through March. Up until the middle of March, the US economy was experiencing one of the strongest performances in decades before the economy was shut down to flatten the COVID-19 infection curve.

In a report, the Treasury Department revealed it collected just over $236 billion in March — the third-highest March in US history. According to the Monthly Treasury statement, this figure included $98 billion in individual income taxes. Payroll, unemployment, and other retirement taxes brought in just over $107 billion.

Since October 2019, the Treasury collected a record-breaking $1.6 trillion in total tax revenues. However, at the same time, the federal government spent $2.3 trillion. That’s a deficit of $743 billion. The only other time the federal government spent more money than it brought in was in the first half of fiscal year 2009. At that time, the government bailed out banks, General Motors, and provided economic stimulus at the beginning of the Great Recession.

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