Congressional Budget Office officially reported on Wednesday that the federal budget deficit in fiscal 2012 (which ended on Sept. 30) topped a trillion dollars for the fourth straight year even though federal taxes paid by individuals increased by 4 percent during the year and federal income taxes paid by corporation increased by about 34 percent.
The increase in corporate federal income tax payments was largely due to changes in the tax rules that corporations were required to follow.
“The federal government incurred a budget deficit of $1.1 trillion in fiscal year 2012, the fourth consecutive year with a deficit above $1.0 trillion,” said the CBO.
“Revenues from all major sources increased in 2012,” CBO reported. “Corporate income taxes accounted for about 40 percent of the increase in total revenues, rising by $61 billion (or 34 percent) and increasing from 1.2 percent to 1.6 percent of GDP. The growth in corporate receipts resulted largely from changes in tax rules in recent years, particularly those that dictate how quickly firms may deduct the cost of their investments in equipment.”