CBO sees increased revenue from corporate taxes, but lower wage and income tax monies

The Congressional Budget Office (CBO) said Friday that its receipts from taxes on wages were lower over the last seven months, but that receipts from corporate taxes were up.

The nonpartisan budget office said that revenue from income and payroll taxes were four percent lower than it had projected, but that revenue from corporate income taxes were 20 percent higher than expected.

CBO Director Douglas Elmendorf wrote in an official blog post that the government had run a deficit of about $800 billion in the first seven months of the U.S. fiscal year, which begins October 1, but that other income sources — like $26 billion in receipts to the Treasury from the Federal Reserve — had helped offset the decline in revenues from income and payroll taxes.

Elmendorf said that recent months’ data suggested a bounce back in revenues from those taxes, though.

“Receipts in March and April suggest that tax revenues may soon begin to rise again,” wrote the CBO director. “In the past two months, withheld income and payroll taxes have been greater than in the same months last year, presumably reflecting a rebound in wages and salaries and a much smaller impact from the Making Work Pay credit.”