Intermarkets' Privacy Policy
Support
« Man Threatens to Jump from Bridge; Passer-By Breaks Through Police Cordon to... Push Him Off | Main | And It Gets Worse: The Coming 100% Inflation »
May 27, 2009

Ouch: Federal Tax Revenues Fall By Over One Third

Damn these problems Obama inherited from Bush.


Federal tax revenue plunged $138 billion, or 34%, in April vs. a year ago — the biggest April drop since 1981, a study released Tuesday by the American Institute for Economic Research says.

When the economy slumps, so does tax revenue, and this recession has been no different, says Kerry Lynch, senior fellow at the AIER and author of the study. "It illustrates how severe the recession has been."

For example, 6 million people lost jobs in the 12 months ended in April — and that means far fewer dollars from income taxes. Income tax revenue dropped 44% from a year ago.

"These are staggering numbers," Lynch says.

Big revenue losses mean that the U.S. budget deficit may be larger than predicted this year and in future years.

"It's one of the drivers of the ongoing expansion of the federal budget deficit," says John Lonski, chief economist for Moody's Investors Service. The Congressional Budget Office projects a $1.7 trillion budget deficit for fiscal year 2009.

The other deficit driver is government spending, which, the AIER's report says, is the main culprit for the federal budget deficit.

The White House thinks that tax revenue will increase in 2011, thanks in part to the stimulus package, says the report from AIER, an independent economic research institute. But it warns, "Even if that does happen, the administration also projects that government spending will be so much higher each year that large deficits will continue, and the national debt held by the public will double over the next 10 years."

As Obama's policies will not improve the economy, but retard it, we're actually looking at a long-term depression in economic activity and tax revenues, plus all of the spending on top of that.

Plus, nationalization of health care. Which, um, will save us money. Or something.

There's an old joke people tell when they make big, luxury purchase. They know they probably shouldn't have bought it, but they wanted it, and they claim, jokingly, they came out ahead on the deal because the luxury purchase was on sale. "Gotta spend to save!" the joke goes.

Obama apparently doesn't realize this is, in fact, a self-effacing joke. He believes it's sound economic doctrine.

Thanks to Stacy.

Heh:

Obama cuts taxes!

Posted by: New York Times Headline Dept.



digg this
posted by Ace at 12:23 PM

| Access Comments




Recent Comments
Tobacco Road, occasional Terminator: "So many people, so many needs. The beautiful teach ..."

eman: "So, basically, the Biden's are gangsters. They ..."

Seamus M: ""Treated a patient today who was alive at the time ..."

Tammy al-Thor: "*Hands Tammy a fan* Posted by: Vendette at Octobe ..."

jewells45Loves her Royals: "Vertov.. that was right before I started watching ..."

BCochran1981 - Tatted, Rested and Ready: "[i]Posted by: Polliwog the 'Ette at October 22, 20 ..."

EC: "I said earlier today that Kevin Vickers told Vic t ..."

kbdabear: "Today's entertainment is chock full of sex yet the ..."

Tammy al-Thor: "They showed it, some dude on a guitar. Not impress ..."

AltonJackson: "thanks, Maet g'evenin', 'rons ..."

Vendette: "Heh, I always loved Farnsworth. Another fine Gawga ..."

Ricardo Kill: ""Treated a patient today who was alive at the time ..."

Recent Entries
Search


MuNuvians
Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
News/Chat
Archives
Powered by
Movable Type 2.64