Tax receipts in the US are lower than government expenditures causing deficits year after year. Another factor to consider is that just because the stock market keeps rising Uncle Sam is not going to earn higher taxes. Conventional wisdom would mean that soaring stocks would lead to higher taxes paid to Uncle Sam.But that is necesssarily not the case.
A very interesting chart showing the wide gap between rising S&P 500 and US Gross Tax Receipts is shown below:
Click to enlarge
Source: In Gold We Trust by Ronald-Peter Stoeferle and Mark J Valek at Incrementum via MoneyWeek
