The Fiscal Effects of the Federal Reserve
2 Pages Posted: 26 Jan 2012 Last revised: 4 May 2012
Date Written: January 23, 2012
The Federal Reserve's policies have large and growing fiscal effects that most tax analysts are unaware of. For example, its deposits to the Treasury amount to almost 4 percent of federal revenues. And in the National Income and Product Accounts, the Fed accounts for almost 25 percent of all corporate tax receipts.
Errata: There are typos on page 2. The figures should read 9.2 cents for $20 and $50 bills, and 7.7 cents for each $100, not $9.2 and $7.7.
Keywords: Federal Reserve, National Income and Product Accounts
JEL Classification: H20, E01, E58, E62
Suggested Citation: Suggested Citation