U.S. Tax Revenue Declined 0.4% in 2018

WASHINGTON—Federal tax revenue declined 0.4% in 2018, the first full calendar year under the new tax law, despite robust economic growth and the lowest unemployment rate in nearly five decades. The Treasury Department said Wednesday federal revenue totaled $3.33 trillion last year, while federal spending totaled $4.2 trillion, a 4.4% increase from the previous year. That pushed the U.S. budget gap up to $873 billion for the 12 months that ended in December, compared with $680.8 billion during the same period a year earlier—a 28.2% increase. Treasury has attributed the weaker revenue collection to the sweeping changes to U.S. tax code that took effect in January 2018, including lower corporate and individual income-tax rates. The Wall Street Journal

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Author: Matthew Randle