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Tax Revenues Post Biggest Drop Since Depression
SFChronicle ^ | August 03, 2009

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 ...


TOPICS: Business/Economy; Front Page News; News/Current Events
KEYWORDS: 111th; agenda; bho44; bhoeconomy; bhohealthcare; capandtrade; communism; congress; corruption; democrats; economy; fascism; hopeychangemas; hopeychangey; irs; obama; obamacare; pelosi; socialism; socializedmedicine; stimulus; taxes; thecomingdepression

1 posted on 08/03/2009 9:54:19 AM PDT by Steelfish
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To: Steelfish


2 posted on 08/03/2009 9:56:24 AM PDT by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: Steelfish

Can everyone say DEPRESSION.... see I knew you could.


3 posted on 08/03/2009 9:58:42 AM PDT by Marty62
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To: Oldeconomybuyer
Tax Revenues Post Biggest Drop Since Depression

Are these egg sucking dog liberals deliberately trying to destroy the economy?

4 posted on 08/03/2009 10:03:02 AM PDT by Mark17
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To: Steelfish
Tax Revenues Post Biggest Drop Since Depression

Tax Revenues Post Biggest Drop Since The Previous Depression

5 posted on 08/03/2009 10:03:54 AM PDT by Iron Munro (Win the War On Poverty - Stop bringing in foreign reinforcements for the other side.)
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To: Oldeconomybuyer
Children and welfare leeches hardest hit.
6 posted on 08/03/2009 10:04:47 AM PDT by Beagle8U (Free Republic -- One stop shopping ....... It's the Conservative Super WalMart for news .)
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To: Marty62

No worries!
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.....


7 posted on 08/03/2009 10:05:19 AM PDT by griswold3
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To: Steelfish
We all know that government can never do with less, so the only thing to do is raise the income tax rate to 100%.

They can give back to you whatever they think you deserve.

8 posted on 08/03/2009 10:06:43 AM PDT by E. Pluribus Unum (Islam is a religion of peace, and Muslims reserve the right to kill anyone who says otherwise.)
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To: Steelfish

Bookmarked.


9 posted on 08/03/2009 10:06:57 AM PDT by circumbendibus (Where's the Birth Certificate?)
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To: Marty62

It’s okay, the stock market is higher but the biggest sellers are insiders.


10 posted on 08/03/2009 10:07:33 AM PDT by blam
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To: E. Pluribus Unum
We all know that government can never do with less, so the only thing to do is raise the income tax rate to 100%.

Slogan for the Democratic tax plan coming soon:

"You make it, we take it."
11 posted on 08/03/2009 10:09:53 AM PDT by Signalman
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To: Steelfish

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


12 posted on 08/03/2009 10:16:00 AM PDT by Buckeye McFrog
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To: Beagle8U
Children and welfare leeches hardest hit.

If only,

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.

13 posted on 08/03/2009 10:16:45 AM PDT by qam1 (There's been a huge party. All plates and the bottles are empty, all that's left is the bill to pay)
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To: Steelfish

And yet, according to Obama’s people, the housing market is recovering. Something doesn’t add up.


14 posted on 08/03/2009 10:20:12 AM PDT by GOPJ ( Obama "the joker" creates terror by chaos and confusion - pitting people against each other-FR:KitJ)
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To: Steelfish

gosh, that’s a shame.

the state of california won’t be able to pay their over-paid

school, police, fire and prison unions


15 posted on 08/03/2009 10:27:36 AM PDT by ken21 (i am not voting for a rino-progressive.)
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To: Steelfish

Tax revenues down? Crap better raise taxes some more! That will fix it!

(/sarc)


16 posted on 08/03/2009 10:30:08 AM PDT by Domandred (Hope is the first step on the road to disappointment.. I am Jim Thompson.)
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To: Oldeconomybuyer

Change you can believe in!!!!!!!


17 posted on 08/03/2009 10:48:01 AM PDT by Shaka
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To: Steelfish

It’s a counterrevolutionary conspiracy by the kulaks, Comrade. They are withholding taxes. The State must resolutely seize their property.


18 posted on 08/03/2009 10:56:21 AM PDT by TexasRepublic (BLOAT - Buy Lots Of Ammo Today!)
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To: Steelfish
Obama has admitted on more than one occasion that HE KNOWS that lowering taxes increases revenue to the treasury, while raising taxes will reduce revenues to the treasury, but raising taxes is "more fair."

Mark

19 posted on 08/03/2009 11:57:12 AM PDT by MarkL (Do I really look like a guy with a plan?)
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To: Steelfish
Tax Revenues Post Biggest Drop Since Depression
Hey 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.

20 posted on 08/03/2009 12:30:22 PM PDT by Condor51 (The difference between stupidity and genius is that genius has its limits)
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To: Condor51
Yeah, it'll prolly last that long, but a lot of us know how to grow our own and protect our own, we'll be fine, poor maybe, but fine.

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.

21 posted on 08/03/2009 1:45:01 PM PDT by norraad ("What light!">Blues Brothers)
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To: ken21
the state of california won’t be able to pay their over-paid

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

22 posted on 08/03/2009 2:32:19 PM PDT by Syncro
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To: griswold3

>> 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! <<.

When this happens I start learning how to barter for food and screw the Central government.


23 posted on 08/03/2009 3:29:12 PM PDT by GraceG
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To: Steelfish

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.


24 posted on 08/03/2009 8:35:14 PM PDT by Kellis91789 (Democrat: Someone who supports killing children, but protests executing convicted murderers.)
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