According to the Congressional Budget Office (CBO), the federal budget deficit grew by 29% ($418 billion) in the first quarter of fiscal year (FY) 2023 over the same period in FY 2022. Meanwhile, receipts declined by 2%, or $26 billion. In its latest report, the CBO drills down on these totals. Individual income and payroll taxes fell $10 billion and withholding declined by $3 billion. Also, individual income tax refunds increased by $14 billion, which further reduced net receipts. On the plus side, nonwithheld payments of income and payroll taxes rose by $16 billion and collections of corporate income taxes increased by a net $7 billion. Refundable tax credit outlays totaled $27 billion.
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