The federal deficit keeps on falling, and tax revenue hits record highs

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Federal tax revenues continue to run at a record pace (in inflation-adjusted dollars) in fiscal 2014, as the federal government’s total receipts for the fiscal year closed June at an unprecedented $2,258,565,000,000 according to the Monthly Treasury Statement.

With $323.646 billion in revenue coming into federal coffers in June alone, the federal government spent $253.127 billion, and ran a surplus for the month of $70.519 billion.

However, despite this one-month surplus, the government has still run a cumulative deficit of $385.855 billion in the first nine months of fiscal 2014. (The federal fiscal year began on Oct. 1, 2013 and will end on Sept. 30, 2014.)

In fiscal 2013, the federal government also ran a one-month surplus in June (amounting to $75.114 billion). However, it ended fiscal 2013 with a full-year deficit of $680.221 billion.

The White House Office of Management and Budget has estimated that in the full fiscal 2014, the federal government will collect $3.001721 trillion in taxes and spend $3.650526 trillion, while running a deficit of $648.805 billion.

The OMB has also estimated that, while running that deficit, the federal government will collect a record amount in inflation-adjusted tax revenues.

When adjusted for inflation (to constant 2014 dollars), the second-greatest federal tax haul through June was in fiscal 2007. By the end of June that year, the federal government had taken in approximately$2.232 trillion in total receipts in constant 2014 dollars.

The single largest source for the federal government’s record tax receipts in the first nine months of FY 2014 was the individual income tax, which brought the Treasury approximately $1.0458 trillion.

The second largest source was what the Treasury calls “Social Insurance and Retirement Receipts,” which includes the Social Security payroll tax, the unemployment insurance tax and other retirement taxes. This accounted for $784.479 billion in tax revenue.

The third largest source of federal revenue in the first eight months of fiscal 2014 was the corporation income tax, which brought in $235.018 billion.

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