Article

2009-08-04 Economy

Biggest revenue drop since 1932

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Posted by Fred 2009-08-04 00:00|| || Front Page|| [11129 views ] Top

#1 And it's going to stay down for many years. Just deducting the maximum capital gains losses will will take the rest of their lives for many top 10% earning taxpayers (who pay 70% of income taxes).

When you foist the costs of government and income redistribution onto a small minority then expect the government to catch pneumonia when those taxpayers catch a cold. The 25 year wild ride is over. Get used to walking in the slow lane G-man.

Posted by ed 2009-08-04 01:40|| 2009-08-04 01:40|| Front Page Top

#2 The same thing is happening all over the developed world.

The only option is to rollback what governments do to the level of 30 or 40 years ago.

And BTW, the revenue problem is going to get an awful lot worse before it gets any better.

Posted by phil_b 2009-08-04 02:30|| 2009-08-04 02:30|| Front Page Top

#3 Time to roll back the public sector to what they are supposed to be - servants of the private sector, not rulers of the private sector.

They broke the social contract, they have to make things right with sacrifice.

Posted by no mo uro 2009-08-04 05:37|| 2009-08-04 05:37|| Front Page Top

#4 Such gloom and doom! $2 billion for clunkers is only $20 from each of 100 million taxpayers.

Or, if we can't raise taxes, like the One promised, then it'll be $100 from each of our children, or $1,000 from each of our grandchildren. Chump change.

Posted by Bobby 2009-08-04 06:12|| 2009-08-04 06:12|| Front Page Top

#5 All of this whilst Barry, his New York Amish inner cabal and the donks insist on spending huge additional amounts? Wake up soon America or we'll likely lose everything.

Posted by Besoeker 2009-08-04 06:53|| 2009-08-04 06:53|| Front Page Top

#6 Well, when you rely upon the top 1 percent to carry as much as 95 percent, then when they take a hit, everyone takes a hit. The Donk solution is class warfare and redistribution, i.e. to kill the goose that lays the golden egg.

Posted by Procopius2k 2009-08-04 06:56|| 2009-08-04 06:56|| Front Page Top

#7 What happens when the government bubble bursts?

Posted by Fred 2009-08-04 09:21|| 2009-08-04 09:21|| Front Page Top

#8 #4 is sarcasm, yes? (English sometimes tone and diction escape me online)

Posted by Lagom 2009-08-04 09:56|| 2009-08-04 09:56|| Front Page Top

#9 I tend to look at it like this, every car turned in wipes my entire tax contribution for a year.

Posted by swksvolFF 2009-08-04 10:46|| 2009-08-04 10:46|| Front Page Top

#10 In 2008, revenues were about $2.524T. The estimates for this year, almost a year old, of $2.0-2.1T are proving to be correct.

If there is a "Third Wave" downturn, anticipated in late 3rd quarter-4th quarter of this year, 2010 revenues may be down to $1.5-1.75T.

Also, once again, a warning that the last week of September could have a bank run, so please have cash on hand, at home in a safe place.

Posted by Anonymoose 2009-08-04 11:06|| 2009-08-04 11:06|| Front Page Top

#11 Why the last week of September, 'moose? What's going on then?

Posted by Barbara Skolaut">Barbara Skolaut 2009-08-04 11:26|| 2009-08-04 11:26|| Front Page Top

#12 Miss Barbara,

The week after the last week in September is the first week in October - the beginning of the fiscal year. 'Moose may suspect - as do I - that some very, very bad news is lurking down the pike.

Mike

Posted by Mike Kozlowski 2009-08-04 11:55|| 2009-08-04 11:55|| Front Page Top

#13 Ah. Thanks, Mike.

I'm not so sure it's actually lurking as just waiting idly for its cue, barely offstage....

Posted by Barbara Skolaut">Barbara Skolaut 2009-08-04 12:02|| 2009-08-04 12:02|| Front Page Top

#14 might be a good time to get rid of some stock but the dollar will not be a good asset to put it in.... decisions decisions ....

Posted by 3dc 2009-08-04 12:34|| 2009-08-04 12:34|| Front Page Top

#15 Highly progressive tax rates are guaranteed to produce this result.

In addition to top earners making less, keep in mind that many are enjoying inflated salaries during the bubble -- former hair dressers are making $300k annually selling houses. Unlike people who are accustomed to having money, the former hair dresser has not taken any steps to shield her income from taxes. She gets hit at the highest possible rates and government tax coffers swell. The problem, of course, is that when the bubble bursts she goes back to cutting hair and government looses a huge source of revenue.

Exasperating this problem, government budgets based on all this new revenue during the bubble years. They spend as if revenues will continue, and continue to grow, forever. When the bubble bursts they don't cut spending, they just push the tax burden down to the middle class.

Rinse and repeat.

Posted by Iblis 2009-08-04 12:35|| 2009-08-04 12:35|| Front Page Top

#16 So lots of people are surprised by the revenue drop. I'm not. Me and everyone in my office has been on a 32 hour work-week since last November. I have no idea how many more businesses are doing the same and then there is the huge rise in unemployment and businesses closing. Raising taxes will only make it worse.

Posted by Deacon Blues 2009-08-04 13:38|| 2009-08-04 13:38|| Front Page Top

#17 might be a good time to get rid of some stock I got rid of all mine 2 years, don't know where to turn now.

Posted by Anguper Hupomosing9418 2009-08-04 15:06|| 2009-08-04 15:06|| Front Page Top

#18 I've been working a 30-hour week for months now (though occasionally I pick up more if a rush project pops up - especially if they need my particular expertise). I'm not complaining, though - at least I've still got a job (unlike others I know).

The gummint is getting less from each of my paychecks because I'm earning less, but I'll be paying the same in quarterly taxes (for my side business) until next April. Then, unless something improves, their total take from my pocket will drop drastically.

A friend of mine works for the State - she told me recently they're going to have an unpaid furlough day this year and next. At least it's just one day - so far. The State is letting people go, too.

I think federal AND state tax revenues are going to continue to go down. But we're not as bad off as we would be if the State 'Pubs hadn't refused to go along with the Dems and spend, spend, spend like they wanted to the last few years.

Pfui.

Posted by Barbara Skolaut">Barbara Skolaut 2009-08-04 15:21|| 2009-08-04 15:21|| Front Page Top

#19 2 Words: Laffer Curve.

Posted by Thraimp Hatfield2565 2009-08-04 16:44|| 2009-08-04 16:44|| Front Page Top

#20 2 more words: Hollow Economy.

Posted by ed 2009-08-04 16:52|| 2009-08-04 16:52|| Front Page Top

#21 I cut the amount of money I usually have uncle sam take out every check - starve the beast.

Posted by Hellfish 2009-08-04 20:17|| 2009-08-04 20:17|| Front Page Top

#22 Wondering out loud how much of this is intentional - people going John Galt? Would like to think it's a big number.

Posted by Iblis 2009-08-04 20:46|| 2009-08-04 20:46|| Front Page Top

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