Revenue dropped precipitously when we had two recessions.
The link in y our post backs up the idea that its primarily, even arguably almost solely, an issue with spending increases.
Note from that chart, revenue is about the same (as a percentage of GDP, much higher in dollars) in 2005 and projected for 2020 as it was in 1960 and in much of the 60s, 70s, and 80s. But spending is much higher, moving from a bit over 18 percent in the 60s to about 25% now, and climbing even higher in the future.
The top figure for revenue in the chart is also the highest figure for revenue post WWII, and that was only sustained for one year. The data show that 18 to 20% of GDP is about all the revenue the feds are likely to get, but spending is already above that, and is projected to climb further, showing that the problem is too much spending, even if your only concerned about the budget balance, and not about the problems caused by government growing too big. |
