For Growth, Washington Must Cut Spending

by: David I. Templeton, CFA

Much of the rhetoric coming out of Washington is focused on the need for more revenue, specifically from individual tax payers. The millionaire tax discussion is emblematic of this focus. As the below chart shows though, individual tax receipts into the U.S. Treasury are up 22% on a year over year basis through the end of September with overall receipts up nearly 7%.

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From The Blog of HORAN Capital Advisors

Additionally, individual receipts for the government are near the level received in 2007. On the other hand, government spending has grown 2% on a year over year basis.

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From The Blog of HORAN Capital Advisors
From The Blog of HORAN Capital Advisors

In short, Washington needs to have a greater focus on cutting spending, while at the same time promoting policies that are favorable to businesses to enable greater employment growth.

Disclosure: None