Monday, October 5, 2026
Here’s some good news – federal tax revenues keep increasing.
But there’s bad news too. Spending is increasing faster than the revenue.
The U.S. collected a record $5.23 trillion in tax revenue in fiscal 2025, which was an increase of 6.4% from the prior year. But the nation spent $7.01 trillion, leaving a $1.78 trillion deficit.
As of this writing, revenue is up $139 billion through 10 months of fiscal 2026, or 3%. Spending is up $309 billion though (5%).
Everyone decries the taxman. But the taxes aren’t the problem. It’s the spending.
On top of that, the money supply keeps climbing. The global money supply reached a new high of $150 trillion in June, a rise of $10.7 trillion or 8% over the past year.
Since the COVID-19 outbreak in 2020, the global money supply has expanded by $50 trillion. Of course, right along with it went consumer prices and interest rates. And there doesn’t seem to be any slowdown or stoppage of the monetary expansion from global central banks.
Yes, we’re bringing in more money. But we’re spending and printing more too. That means inflation and interest rates will likely remain stuck in a higher-for-longer situation for the foreseeable future.
Daniel A. White is an investment advisory representative of and provides advisory services through CoreCap Advisors, LLC. Daniel A. White & Associates and CoreCap Advisors are separate and unaffiliated entities.