This Should Blow You Mind
Wednesday, May 12, 2010 at 10:14PM Tax receipts have taken an enormous hit with Barack Obama in office and most Americans are likely unaware of just how big that hit is. This from the AP:
The federal budget deficit hit an all-time high for the month of April as government revenue fell sharply.
The Treasury Department said Wednesday the April deficit soared to $82.7 billion, the largest imbalance for that month on record. That was significantly higher than last year's April deficit of $20 billion and above the $30 billion deficit private economists had anticipated.
The government normally runs surpluses in April as millions of taxpayers file their income tax returns. However, income tax payments were down this April, reflecting the impact of the recession which has pushed millions of people out of work.
Total revenues for April were down 7.9 percent from a year ago, dipping to $245.3 billion.
... The trillion-dollar-plus deficits are being driven by the impact of the recession, which has cut government tax revenue while driving up spending.
Analysts estimate that roughly one-third of the increase in the deficits over the past two years came from lost revenue — the result of fewer people working and lower corporate profits. Another third is from increased government spending that normally occurs in a downturn, such as higher payments for unemployment benefits and food stamps. The final third reflects the added government spending on the $787 billion stimulus bill and the $700 billion financial bailout.
Here is analysis (note how much the individual and corporate tax receipts are down):
What the AP story failed to explain (not surprisingly) is that tax receipts are down roughly 40% from the last two years that Bush was in office. If Americans knew that were the case, his poll numbers would likely drop further.
The PR firm known as the mainstream media continues to look out for their guy above all else.
Reader Comments (4)
Stunning. I heard Neal Boortz mention today that in 2007 it had been projected that our debt to GDP ratio would reach 60% in 2023. That has now been revised to... 2010. This guy needs to go. He's killing us (understatement of the year).
How can the tax receipts be off that much? I can't get my head around how that is even possible. One thing is certain, this does not look good, particularly with the current anti-free market administration.
Maybe it isn't such a good idea afterall to have 47% of the public pay no taxes.
Or, maybe it is time to bring spending in line with revenue. I know, I know; such revolutionary thinking is frowned upon in D.C.
Hey Liberals out there, how much proof do you need to see to admit that your policies are harmful to the economy and to tax revenues? Paul Krugman and Joe Klein I'd love to hear you weigh in this. Tell me how government should spend more and marginal tax rates should go up. That will make this gap worse! Cut tax rates and regulation and watch the tax revenues roll in. Reagan did it, but they say he increased the deficit. That's not the point, he dramatically increased governement revenues. He couldn't get spending cuts with the likes of Tip O'Neill et al in control in Congress.