The surge in individual stock trading by Americans last year contributed to a record tax haul for the federal government this spring — shrinking the budget deficit and surprising Wall Street, but likely leaving President Joe Biden in no stronger shape as he battles for his fiscal agenda in Congress.
Tax collections since the start of the fiscal year in October are running at a record high — up some 43% over the same period in 2019, the most recent comparison not disturbed by the pandemic, Treasury Department data through Thursday show.
Surging wages and corporate profits are behind much of the increase, testament to the powerful economic recovery that Biden and congressional Democrats are struggling to convince voters is under way. But another factor was the capital gains notched by Americans turning to securities trading during the pandemic. Individual taxes from small business proceeds or the sale of stock and other assets are nearly triple the 2019 levels.
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