IRS tax revenue falls 34% along with taxpayers' income

[Steve_A]

Hi Dantheman62,

I think you have a point. Also dont forget the immigrants that are returning to their home countries who used to pay tax, even if it was only sales tax.

We can add on to that a probable drop in real earnings. As the economy slumps and jobs become harder to come by, the tendency is for wages to come down for new starters.

Of course, we can't rule out people who simply haven't paid their tax, or passed the collected tax (in the case of companies and commercial outlets) to the government. Although there is no data available for this, it shouldn't be ruled out.

Finally we should also take into consideration the value of the US dolar. It lost a good percentage last week of around 2% over other hard currencies, which means that if the revenue from taxes is down by around 30%, we must also take in to consideration the value of the dolar to see how much in real terms the government can spend. If the dolar is down, any foreign trade will get less of a bang for the buck. Any imports would become more expensive and consequently goods made from imported prime material will become more expensive.

Oil will become more expensive also and so transport will become more expensive. It's a scenario that has the face of Brazil fifteen years ago.

If you check out what happened in Brazil during that time youwill find out how to get out of the hole the US government is digging for itself.

Best regards,

Steve

Originally Posted by Dantheman62

It is amazing, and that 6 million unemployed figure is just the ones collecting unemployment I think. I'll bet the real number of unemployed people is at least double that!

[peaceandlove]

Originally Posted by Steve_A

Hi Dantheman62,
We can add on to that a probable drop in real earnings. As the economy slumps and jobs become harder to come by, the tendency is for wages to come down for new starters.
Best regards,
Steve

Hi Steve,

In addition to that, with the lack of jobs, we will probably see more men and women joining the armed forces just in order to eat and to have some money. Are the military taxed on their income?

A good way to increase our already over-dominated military presence in the world.

Best regards to you too,

PaL

P. S. I suspect there will be many who will purposely commit crimes in order to be incarcerated and have a roof over their head and free food. CRAZY? More US dollars going to feed the already overburdened prison system. GOTCHA where they WANTCHA!


THANKS TANGO FOR OPENING MORE EYES!