Tuesday, August 2, 2016

Tax receipts July 2016 vs July 2015

Individual income tax collections January through July this year is up by 3.8% compared to the same period last year.

Corporate income tax collections are down 12.6%.

I view Excise Taxes to be the best indicator of economic activity and those collections are down 2.9% year to date vs. year to date last year.

Interesting.  FUTA (Federal Unemployment Tax) is down 14% yet there is supposed to be a strong labor market.  Futa is charged to employers only.  It is charged on the first $6000 of employee wages so it is a good indicator of new hiring.  I don’t understand how it could be down if hiring is increasing.  Reporting this tax by employers is erratic, however. *

            Calendar YTD
Jul 16 Jul 15
W/H Inc & P/R 1,341,615 1,300,674
Ind Inc Tx 95,407 83,421
Total 1,437,022 1,384,095
Corp Inc Tx 170,416 194,999
FUTA 7,231 8,412
Excise Tax 47,401 48,816


I will wait to see what FUTA collections are in August.  July was exceedingly low.  It makes me think that companies filed late.

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