Revenue Analysis

Introduction

As many constituents and organizations look to the government for funding, the parties in office are seeking to gain political advantages for upcoming elections. One of the major issues representatives often address during campaigns to gain an advantage is the federal deficit. Since the deficit adds to the debt, which is over $14 trillion. “The federal debt exists as a result of federal government shortfalls, or deficit budgets in which the government's expenses exceed its revenues,” (Federal Debt, 2011). An important component of deficit is revenue. In order for individuals to analyze revenue, they must look at how the government receives its revenue.

The Budget Economic: Revenue Outlook

The Revenue Outlook evaluates how the government utilizes its resources to fund its expenses. The projected revenue is predicted to be $2.2 trillion, a 3 percent increase from last year. According to the Revenue Outlook, the three largest sources from which the government receives its funding are (1) individual income taxes (2) corporate income taxes and (3) social insurance taxes. Other secondary funding sources are derived from the Federal Reserves, customs duties, excise taxes, estate taxes, gift taxes, fines, and fees.

The CBO reports an expected dramatic drop going into 2011 “...[resulting] largely from unmeasured factors related to the recession and the economy’s slow recovery,” (Congressional Budget Office, 2011:86). Since the CBO anticipates an economic recovery, the expectation for revenue will rise considering that individuals are expected to have more income. Since this individual income is expected to increase, the tax brackets are also estimated to rise. The total share of revenue will increase drastically from 2011...

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...arch 5, 2011.)

Podesta, John. 2010. 16 Ways to Cut the Deficit. (Accessed from the Internet at this website

http://www.nytimes.com/roomfordebate/2010/11/14/16-ways-to-cut-the-deficit/a-risk-fee-for-big-banks, on March 3, 2011.)

The Pew Research Center for the People & the Press. 2010. Deficit Solutions Meet With Public Skepticism (Accessed from the Internet at this website http://people-press.org/report/683/, on March 4, 2011.)

Rooney, Ben. 2011. U.S. bureaucracy wastes billions, watchdog says. (Accessed from the Internet at this website http://money.cnn.com/2011/03/01/news/economy/gao_report_government_duplication/index.htm, on March 2, 2011.)

Tom Coburn Office. 2010. Coburn PAYGO Amendment. (Accessed from the Internet at this website http://coburn.senate.gov/public/index.cfm/rightnow?ContentRecord_id=3F90C14B-802A-23AD-4CB4-741E080AF897,

on March 5, 2011.)