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Federal Deficit Improves in July on Higher Tax Collections

The Federal Deficit narrowed in July due to higher tax receipts.  The deficit for October through July was $973.84 billion and that compares with $1.1 trillion for the same ten month period of 2011. The monthly report shows that the…

By Jon C. Ogg
Published August 10, 2012, 2:16pm ET · 1 min read

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The Federal Deficit narrowed in July due to higher tax receipts.  The deficit for October through July was $973.84 billion and that compares with $1.1 trillion for the same ten month period of 2011.

The monthly report shows that the federal government has spent some $2.983 trillion so far this year and that is barely down from the $2.993 trillion seen for the same period a year ago.  Tax collections year to date have been $2.009 trillion and that is 6% higher than the $1.893 trillion for the same ten month period last year.

Without education and TARP adjustments, that deficit would have apparently been $1.026 trillion versus $1.185 trillion a year ago. That puts the unadjusted figures at a deficit of $69.6 billion in July versus a $129.38 billion in the month of July of 2011.

Individual income tax receipts for the first ten months of Fiscal 2012 rose to $928.17 billion from $890.65 billion in 2011. Corporate taxes rose $182.44 billion from $140.54 billion in the same period in 2011.

We have already seen that the CBO is projecting that the 2012 deficit will be about $1.2 trillion.

JON C. OGG

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Jon C. Ogg

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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