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Old 05-28-2009, 04:11 AM   #1
Carol
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Default IRS tax revenue falls 34% along with taxpayers' income

This is amazing because that 34% is a good one third of the US tax revenue and is a much clearer indicator of what bad financial shape the nation is in. Pretty soon I can see the legislator just giving the land to China who holds much of the US debt. Then what?

IRS tax revenue falls along with taxpayers' income
By John Waggoner, USA TODAY
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.

Big revenue losses mean that the U.S. budget deficit may be larger than predicted this year and in future years.

"It's one of the drivers of the ongoing expansion of the federal budget deficit," says John Lonski, chief economist for Moody's Investors Service. The Congressional Budget Office projects a $1.7 trillion budget deficit for fiscal year 2009.

The other deficit driver is government spending, which, the AIER's report says, is the main culprit for the federal budget deficit.

The White House thinks that tax revenue will increase in 2011, thanks in part to the stimulus package, says the report from AIER, an independent economic research institute. But it warns, "Even if that does happen, the administration also projects that government spending will be so much higher each year that large deficits will continue, and the national debt held by the public will double over the next 10 years."

The government may have a hard time trimming spending to reduce the deficit when the recession ends. The 77 million Baby Boomers— those born in 1946 through 1964 — will start tapping their federal retirement benefits soon, which means increased government outlays for Social Security and Medicare.

"It will be doubly difficult for federal government to reduce expenditures and narrow the deficit as rapidly as they did following previous recessions," Lonski says. At the end of the last major recession, in 1981, Boomers were in their 30s. Their incomes were expanding, as was their appetite for goods and services.

The Boomers now are in their 50s and 60s and unlikely to keep increasing incomes for long, which means that revenue from income taxes could flatten in the next few years. Also, Lonski says, they are more likely to save for retirement than spend — and consumer spending is a big driver of the economy.

"The American consumer led us out of previous recessions with some semblance of gusto," Lonski says. "They're too old to do it now."
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Old 05-28-2009, 04:16 AM   #2
Dantheman62
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Default Re: IRS tax revenue falls 34% along with taxpayers' income

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!
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Old 05-28-2009, 12:08 PM   #3
Steve_A
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Default Re: IRS tax revenue falls 34% along with taxpayers' income

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




Quote:
Originally Posted by Dantheman62 View Post
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!
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Old 05-28-2009, 12:55 PM   #4
Tango
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Default Re: IRS tax revenue falls 34% along with taxpayers' income

Quote:
Originally Posted by Carol View Post
This is amazing because that 34% is a good one third of the US tax revenue and is a much clearer indicator of what bad financial shape the nation is in. Pretty soon I can see the legislator just giving the land to China who holds much of the US debt. Then what?

IRS tax revenue falls along with taxpayers' income
By John Waggoner, USA TODAY
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.

Big revenue losses mean that the U.S. budget deficit may be larger than predicted this year and in future years.

"It's one of the drivers of the ongoing expansion of the federal budget deficit," says John Lonski, chief economist for Moody's Investors Service. The Congressional Budget Office projects a $1.7 trillion budget deficit for fiscal year 2009.

The other deficit driver is government spending, which, the AIER's report says, is the main culprit for the federal budget deficit.

The White House thinks that tax revenue will increase in 2011, thanks in part to the stimulus package, says the report from AIER, an independent economic research institute. But it warns, "Even if that does happen, the administration also projects that government spending will be so much higher each year that large deficits will continue, and the national debt held by the public will double over the next 10 years."

The government may have a hard time trimming spending to reduce the deficit when the recession ends. The 77 million Baby Boomers— those born in 1946 through 1964 — will start tapping their federal retirement benefits soon, which means increased government outlays for Social Security and Medicare.

"It will be doubly difficult for federal government to reduce expenditures and narrow the deficit as rapidly as they did following previous recessions," Lonski says. At the end of the last major recession, in 1981, Boomers were in their 30s. Their incomes were expanding, as was their appetite for goods and services.

The Boomers now are in their 50s and 60s and unlikely to keep increasing incomes for long, which means that revenue from income taxes could flatten in the next few years. Also, Lonski says, they are more likely to save for retirement than spend — and consumer spending is a big driver of the economy.

"The American consumer led us out of previous recessions with some semblance of gusto," Lonski says. "They're too old to do it now."


Thank you, Carol, for posting this 'Mind Control article' by USA Today...

Let's break this DOWN... Because this is Apples N' Oranges here, people.

This article is only talking about corporate profits... Nothing more...

Why not talk about the corporation profits, of the NASA, INC. Also, funded
by United States, INC., and a major share holder in that corporation.

Revenue = corporate profits

IRS Revenue = An offshore corporations profits off Americans; parent corp. is
Federal Reserve Bank, INC. N' Ya know they are both PRIVATE offshore corporations that pay NO Corp. taxes to the United States of America, INC.

" Tax " Is the FEE, the corporation charges for its serves to YOU the consumer.... Like whatever FEE you pay to as an example your telephone
provider.

" The U S Consumer willl lead us out of the recession." [F U] Mr. Programmer!

Look for the " same statement " repeated three different ways...

Consumer spending
Consumer spending is a driver
government outlays


Now re-read the article and see through the Matrix and understand why I
LOL when ever I see them...

" Corporate Profits " NOT the economy.....


Trooly,



Tango
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Old 05-28-2009, 06:25 PM   #5
peaceandlove
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Default Re: IRS tax revenue falls 34% along with taxpayers' income

Quote:
Originally Posted by Steve_A View Post
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!
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