Mainecoons
03-12-2012, 05:35 PM
Guess what folks, in an economic recovery, tax revenues go UP not DOWN unless there have been significant changes to the tax code, which there have not.
http://www.zerohedge.com/news/us-rakes-largest-monthly-deficit-history-2012-tax-revenues-net-refunds-trail-2011
A few days ago we noted
that based (http://www.zerohedge.com/news/us-budget-deficit-hits-all-time-high-february)on preliminary data, the February budget deficit would hit $229
billion (yes, nearly one quarter of a trillion in one month,
about where real Greek GDP is these days) - the largest single monthly deficit
in history. Unfortunately, this number was low: the final February deficit was
just released and the actual
print is $231.7 billion (http://fms.treas.gov/mts/mts0212.pdf). It also means that in the first 5 months of the
fiscal year, the US has raked up $580 billion in deficits, oddly matched
by $727 billion in new debt issuance, 25% more new debt issued than needed to
fund deficits... And that in itself would not be horrible - February is
traditionally the worst month for deficits as the Treasury sees a surge in tax
refund issuance - if it wasn't for something even more troubling. As the second
chart below shows, through last Friday, and net of tax refunds, total US tax
revenues were actually lower in the fiscal 2012 year to date period than
compared to 2011, by just under $2 billion, at $625.5 billion. Which is the
weakest link for any argument that the US is actually growing: what is
growing is America's debt (now almost exponentially), while its
revenues are at best unchanged. And the scariest: annualizing net tax revenues
brings the number to $1.5 trillion. Which is just 50% more where total
US debt interest will be in 2014 when debt is $20 trillion, assuming interest
rates are somehow allowed to go back up... to the astronomical level of
5%.
So how can employment theoretically go up but no more taxes get collected? Simple although most don't know it because the MSM in their unending zeal to re-elect Obama deliberately leave out the data which shows all those people who have stopped looking for work and the falling pay and growing part-time nature of those wondrous jobs Obama claim he is creating.
Yup, the middle class is being forced to subsist on several part time jobs with low pay and no benefits as a replacement for the jobs that Obama and his out of control federal bureaucracy are killing before they are born. Like all of those fat paying jobs the pipeline would bring, like all of those fat jobs that come with U.S. based energy production.
http://www.zerohedge.com/news/us-rakes-largest-monthly-deficit-history-2012-tax-revenues-net-refunds-trail-2011
A few days ago we noted
that based (http://www.zerohedge.com/news/us-budget-deficit-hits-all-time-high-february)on preliminary data, the February budget deficit would hit $229
billion (yes, nearly one quarter of a trillion in one month,
about where real Greek GDP is these days) - the largest single monthly deficit
in history. Unfortunately, this number was low: the final February deficit was
just released and the actual
print is $231.7 billion (http://fms.treas.gov/mts/mts0212.pdf). It also means that in the first 5 months of the
fiscal year, the US has raked up $580 billion in deficits, oddly matched
by $727 billion in new debt issuance, 25% more new debt issued than needed to
fund deficits... And that in itself would not be horrible - February is
traditionally the worst month for deficits as the Treasury sees a surge in tax
refund issuance - if it wasn't for something even more troubling. As the second
chart below shows, through last Friday, and net of tax refunds, total US tax
revenues were actually lower in the fiscal 2012 year to date period than
compared to 2011, by just under $2 billion, at $625.5 billion. Which is the
weakest link for any argument that the US is actually growing: what is
growing is America's debt (now almost exponentially), while its
revenues are at best unchanged. And the scariest: annualizing net tax revenues
brings the number to $1.5 trillion. Which is just 50% more where total
US debt interest will be in 2014 when debt is $20 trillion, assuming interest
rates are somehow allowed to go back up... to the astronomical level of
5%.
So how can employment theoretically go up but no more taxes get collected? Simple although most don't know it because the MSM in their unending zeal to re-elect Obama deliberately leave out the data which shows all those people who have stopped looking for work and the falling pay and growing part-time nature of those wondrous jobs Obama claim he is creating.
Yup, the middle class is being forced to subsist on several part time jobs with low pay and no benefits as a replacement for the jobs that Obama and his out of control federal bureaucracy are killing before they are born. Like all of those fat paying jobs the pipeline would bring, like all of those fat jobs that come with U.S. based energy production.