U.S. tax revenue is running as much as $70 billion behind estimates more than halfway through the fiscal year, leaving the government with less cash than planned and adding to pressure on Congress to raise the debt ceiling.
Receipts totaled $2.17 trillion in the eight months through May, about 3% lower than projections and $29 billion higher than a year ago, the Congressional Budget Office said in monthly projections on Wednesday. The deficit was $432 billion in the period, about $26 billion wider than a year earlier.
“Taxpayers may have shifted more income than projected from 2016 to later years, expecting legislation to reduce tax rates to be enacted this year,” CBO said. The receipts may also fell short of expectations because of weaker-than-projected income growth last year, the agency said.
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