Wow: Federal Tax Revenues Fall By More Than A Third
A whopping 34%, which I’ve got to admit is a little stunning.
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.
Here’s the really bad part:
Big revenue losses mean that the U.S. budget deficit may be larger than predicted this year and in future years.
Our deficits may actually be worse than previous projected. Meaning we might actually end up with even more debt that the $10 trillion Obama is already projected to be adding to our national debt pile.
And are there any plans in government to cut back on spending to keep the nation from plunging into a black hole of debt? Of course not. They’re talking about new and bigger taxes.
