The Congressional Budget Office Is Super Bullish On Corporate Tax Revenue Starting In 2014

The Congressional Budget Office is out with its projections for 2012, so we’re mining it for the things that matter, and here’s one — corporate tax revenue.

CBO says: In 2012 we’re going to see a spike of about 40% ($70 billion) to 1.6% of GDP. Then in 2014, we should see a major spike of about 70%.

Here’s why:

  • A bunch of tax provisions are going to expire, and provisions that move tax payments to 2014. For example: From 2008-2010 companies could immediately expense investments in equipment. In the 2010 tax act they were allowed to deduct 100% — after 2012, this rule should go to pre 2008 form.
  • “According to CBO’s calculations, provisions in seven different laws—including the Worker, Home- ownership, and Business Assistance Act of 2009 (P.L. 111-92) and the Hiring Incentives to Restore Employment Act (P.L. 111-147)—will cause $42 billion in corporations’ estimated tax payments to be shifted from 2015, 2016, and 2017 into 2014”

Check out the chart below: