Skip to comments.Tax Revenues Post Biggest Drop Since Depression
Posted on 08/03/2009 9:54:19 AM PDT by Steelfish
Tax revenues post biggest drop since Depression
STEPHEN OHLEMACHER, Associated Press Writer
Monday, August 3, 2009
The recession is starving the government of tax revenue, just as the president and Congress are piling a major expansion of health care and other programs on the nation's plate and struggling to find money to pay the tab.
The numbers could hardly be more stark: Tax receipts are on pace to drop 18 percent this year, the biggest single-year decline since the Great Depression, while the federal deficit balloons to a record $1.8 trillion.
Other figures underscore the recession's impact:
Individual income tax receipts are down 22 percent from a year ago. Corporate income taxes are down 57 percent. Social Security tax receipts could drop for only the second time since 1940, and Medicare taxes are on pace to drop for only the third time ever.
The last time the government's revenues were this bleak, the year was 1932 in the midst of the Depression.
"Our tax system is already inadequate to support the promises our government has made," said Eugene Steuerle, a former Treasury Department official in the Reagan administration who is now vice president of the Peter G. Peterson Foundation.
(Excerpt) Read more at sfgate.com ...
Can everyone say DEPRESSION.... see I knew you could.
Are these egg sucking dog liberals deliberately trying to destroy the economy?
Tax Revenues Post Biggest Drop Since The Previous Depression
Can you say ‘VAT Tax’? No income? No problem? We’ll tax everything else!
Bad things happen when the government controls over 50% of the GDP, we’re at 60% NOW!
The Recession is over! Long live the Depression!
Keep on the Sunny side
Always on the sunny side
Keep on the sunny side of life.....
They can give back to you whatever they think you deserve.
It’s okay, the stock market is higher but the biggest sellers are insiders.
being liberal ideologues, Bam and Pelosi will react by raising taxes, which will invoke another downward spiral, leading the the pulling of that big electoral flush handle in Nov. 2010
No matter what happens or how far we crash Obama & the Rats will still make sure they get their checks on the 1st of the month.
And yet, according to Obama’s people, the housing market is recovering. Something doesn’t add up.
gosh, that’s a shame.
the state of california won’t be able to pay their over-paid
school, police, fire and prison unions
Tax revenues down? Crap better raise taxes some more! That will fix it!
Change you can believe in!!!!!!!
It’s a counterrevolutionary conspiracy by the kulaks, Comrade. They are withholding taxes. The State must resolutely seize their property.
Tax Revenues Post Biggest Drop Since DepressionHey no problem. 'We' just need a modern version of Smoot-Hawley. We can call this one .. Pelosi-Lee (for the two biggest dimwits in the House).
It will put HUGH tariffs, 60% or so, on allllllll foreign imports -- everything from Lead Pencils made in Taiwan to Japanese Steel and Musical Instruments made in China. 'On paper' it will raise tax revenue 1010 as this will put all Americans back to work and strengthen unions and raise wages.
Or... it will make this 'depression' last until 2050 and we'll all be living in boxes and killing each other for food. And we'll be begging countries like Botswana for relief from our National debt.
The Grapes of Wrath by John Steinbeck is a good book to read read right now, gives great hope and perspective, and it's great fun.
school, police, fire and prison unions
They didn't get the wage cut and 3 day furlough?
Many state workers did.
One I know has got 3 furlough days a month PLUS an 25% cut in pay!
Adding the 3 10 hr days not worked, that's cutting 4 more days.
So that is like cutting 1 3/4 weeks of pay.
That's a little more than half.
This particular person I helped get another government job at 57 hrs a month at 11 bucks an hour, so it won't destroy this person's income completely. But it doesn't help the
>> Can you say VAT Tax? No income? No problem? Well tax everything else!
Bad things happen when the government controls over 50% of the GDP, were at 60% NOW! <<.
When this happens I start learning how to barter for food and screw the Central government.
I guess this guy has no clue what the term “limited government” really means:
“The numbers for 2009 are striking, head-snapping. But what really matters is what happens next,” said Gale, who previously taught economics at UCLA and was an adviser to President George H. W. Bush’s Council of Economic Advisers.
“If it’s just one year, then it’s a remarkable thing, but it’s totally manageable. If the economy doesn’t recover soon, it doesn’t matter what your social, economic and political agenda is. There’s not going to be any revenue to pay for it.”
It doesn’t require much revenue at all to pay for what the Constitution actually authorizes the Federal government to do. That, plus paying off the debt, could be done with 1/3 the current reduced revenue level.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.