Apr 15, 2013 | by Franck Cushner, CFP®
With tax season upon us, the Federal government’s ability to tax comes into full force. The dynamics of tax revenue is a combination of economic prosperity, tax rates, and the existing population of taxpayers. Ongoing discussions surrounding tax rates have been a focus of how to increase tax revenue. However, the other two components include economic conditions and the number of individuals paying income taxes.
As new hires enter the workforce, either out of school or as immigrants, additional tax revenue is derived from their incomes. As economic conditions improve, companies may hire additional employees and eventually start to issue pay raises.
For the past 40 years, since tax year 1973, federal tax receipts have increased an average of 6.76% each year, including year over year decreases in 1983, 2001, 2002, 2003, and 2009.
Sources: CBO, Tax Policy Center
460 Park Ave, 21st Floor, New York, NY 10022
Ph. (212) 489-1800
Ensemble Financial © 2018
All Securities and Advisory Services provided under the name Ensemble Financial, Inc. are offered through Titleist Asset Management, Ltd. ("TAM"), a Registered Broker/Dealer & Registered Investment Advisor and member FINRA & SIPC. Customers working with Ensemble Financial, Inc. will be dealing solely through TAM with respect to their investment, brokerage and securities transactions. TAM does not offer or provide legal or tax advice. Please consult your attorney and/or tax advisor for such services. Member FINRA and SIPC.