The federal deficit was $150 billion in November, according to the monthly balance sheet [.pdf] released today from the US Treasury. Expenditures of the federal government totaled $299 billion, whereas receipts totaled $149 billion. Both expenditures and receipts increased compared to last November [.pdf], when outlays totaled $254 billion and receipts totaled $134 billion. Expenditures increased 14%, whereas receipts increased 10%. Also, the federal deficit was $120 billion during last November – $30 billion less than this year.
Four categories of spending account for a majority of the rise: defense spending increased $12 billion, medicare and medicaid increased $24 billion, social security increased $6 billion, and veterans affairs increased $5 billion. Among the 28 major federal departments, only 5 recorded less spending this November, whereas the remaining 23 had higher costs than last year. The greatest reductions were in the Department of Justice and the Department of Labor, where spending declined $716 million and $557 million, respectively.
Receipts for the federal government increased as a result of individual income taxes, which rose $19 billion compared to last November. Among the 10 major tax categories, half of the categories increased, whereas the other half declined. The greatest reduction among the tax categories was in corporate income taxes, which declined $1 billion. Also, during the 3rd quarter, corporate profits reached an all time high. In other words, corporations are not only paying fewer taxes this year, but they are also making more profit than ever before.
Furthermore, corporate income taxes are actually negative on the US treasury balance sheet. Last November corporate income taxes were -2.1 billion, while they were -3.1 billion this November. As a result, the federal government is losing money on corporate income taxes. Therefore, a more appropriate phrase is that corporations are not only receiving more tax revenue this year, but they are also making more profit than ever before.
Meanwhile, individual income taxes have gone through the roof, spending has increased in 23 of the 28 major federal departments, the deficit continues to worsen, and the unemployment rate also went up during November. These statistics indicate an economy where corporations reap revenue, despite widespread economic hardship, while the middle class receives the cold shoulder.