Federal tax revenues have fallen for the last three years straight. The
last time that happened was during the Depression.
The sluggish economy and tax cuts certainly are relevant, but apparently
they do not account for the total $269 Billion drop since 2000.
In January 2001, CBO forecast capital gains tax receipts at $119 Billion.
By January 2003 that number was reduced $51 Billion.
Current projections for TOTAL tax receipts for 2003 have fallen to $899
Billion. In 2001 the estimate for 2003 was $1,180 Billion. That represents
a drop of about 25%.
Last week the White House revised the projection of tax revenues they
originally provided six months ago. They dropped another $80 Billion. The
projection for 2004 was revised downward by $125 Billion.
In today's Washington Post, a White House economist, speaking on the
condition of anonymity, pointed to two large pots of money that have become
seriously depleted: corporate taxes and non-withheld income taxes.
According to the Treasury Department statement from Wednesday, Individual
tax revenues were down by $39 Billion compared to the same time last year.
Corporate tax revenues were down $18 Billion. In percentage terms, that
reflects a drop of about 6% for individual tax revenues and 15% for
corporate revenues from last year.
I realize this is nowhere near as sexy as a celebrity rape case, but the
impact of this trend is clearly going to be felt by a hell of a lot more
people.
--
"Trouble with you is the trouble with me,
Got two good eyes but WE still don't see.
Come round the bend, you know it's the end,
The fireman screams and the engine just gleams...
Driving that train, high on cocaine,
Casey Jones YOU BETTER, watch your speed.
Trouble ahead, trouble behind,
And you know that notion just crossed my mind."
- "Casey Jones" by the Grateful Dead.
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