The Congressional budget estimates a deficit of $590 billion for fiscal year 2016 with federal tax revenues reaching $3.3 trillion. Based on this estimate, the 2016 budget exceeds the 2015 budget by $152 billion.
Now that I have infuriated so many people (please remember I am merely the messenger), I’m sure you are now wondering what this mean to you and your finances. Here are the facts as presented by the Congressional Budget Office:
- This anticipates income tax paid by individuals will increase. This being based on the hopes there will be growth in wages and salaries. They are estimating individual income taxes will increase by about $13 million.
- It is predicted corporate income tax collected will decrease by about $44 billion for fiscal year 2016. Some of this decrease is due to the Consolidated Appropriations Act, 2016, allowing accelerated deductions for certain investments.
It is predicted that the income tax collection from individuals will increase annually from 2017 to 2026 because of tax bracket increases due to increased wages, increased distributions from retirement accounts and increased salaries for high income taxpayers.
Without taking into account the anticipated tax reform expected in 2017, corporate income tax collection is projected to remain as is. However, if there are significant reforms, all of the above mentioned information is subject to change.