Deficit to Hit All-Time High (Tax Revenues Plummet, New FY 2010 Deficit of $1.6 Trillion)

The Wall Street Journal ^ | Sunday, January 31, 2010 | Jonathan Weisman

[kristinn]

President Barack Obama will propose on Monday a $3.8 trillion budget for fiscal 2011 that projects the deficit will shoot up to a record $1.6 trillion this year, but would push the red ink down to about $700 billion, or 4% of the gross domestic product, by 2013, according to congressional aides.

The deficit for the current fiscal year, which ends on Sept. 30, would eclipse last year's $1.4 trillion deficit, in part due to new spending on a proposed jobs package. The president also wants $25 billion for cash-strapped state governments, mainly to offset their funding of the Medicaid health program for the poor.

This WSJ article fails to mention the plummeting of FY 2010 federal tax receipts the WSJ reported just a few weeks before:

Year-to-date federal government revenues totaled $487.78 billion, compared to $547.38 billion for the first three months of fiscal 2009. Individual income-tax receipts totaled $207.73 billion, compared to $255.29 billion. Corporate tax revenues were at $33.93 billion, down from $50.37 billion.

Last August, the AP reported that federal revenues were on pace to drop 18%, the worst since 1932.

[smoothsailing]

Obama is not an idiot, Jim.

Well, if he's not an idiot, why is he a Democrat? ;o)

[Oceander]

Dear embattled President Obama, my five year-old daughter would like to have a word with you:

[eyedigress]

Change has come to America!

[Brugmansian]

It will take another form but here is what happened in Argentina:

In the 1980s, the economy, increasingly disoriented by inflation, declined at a rate of 1 percent per year. Employment continued to grow 1.6 percent per year but the 2.6 percent average annual decline in the productivity of the employed was the clearest evidence that only unproductive activities were expanding. This was especially the case of the public sector but it also existed in the private sector,which continued to be strongly protected from foreign competition and involved in financial speculation. Government expenditure during the 1980s represented, on average, 33 percent of GDP, while the fiscal deficit was about 5 percent of GDP. . . .

The year 1989 was catastrophic. Government expenditure reached 35.6 percent of GDP and the fiscal deficit climbed to 7.6 percent of GDP. From December to December, inflation almost reached 5,000 percent; at the peak of March 1989 to March 1990, it was over 20,000 percent . . . more

[Flavius]

quick tax something

[central_va]

Where can we go?

I have an answer to that question....

[jsh3180]

The proposed FY 2011 budget has factored into it hundreds of $Billions in cap & trade revenues, of course said revenue is not likely to be forthcoming.

[lainie]

Two liberals in recent weeks have admonished me that I didn't really hear what I thought I did: I must take the context into account. It must be part of the next liberal meme.

Well, here's some context for this deficit:

http://www.pagetutor.com/trillion/index.html

p.s. If he's "off" by 36% again, 2011 will be $1.77 Trillion. or $5 Trillion in three years.

[P.O.E.]

There was a similar report earlier It was something about “cutting costs” by 20 billion (?) by eliminating the advanced earned income tax credit.

So it wasn’t about cutting spending, but raising taxes.

Typical

http://www.reuters.com/article/idUSTRE60T21S20100130

[Ghost of Philip Marlowe]

Plummeting tax revenue is the surest proof that there is no recovery.

[RipSawyer]

What you said. AAAAmen, Amen, Amen.

[Ghost of Philip Marlowe]

Sure they could have.

They caused this (the communists in the Democrat party, their enablers in the MSM, academe, even the pulpit, and the central bank known as the Federal Reserve).

[Ghost of Philip Marlowe]

I disagree. He is not that bright.

He is a good actor — when he’s on teleprompter.

But he is not very bright.

His handlers are extremely clever in a very devious manner.

[tflabo]

I..nterloper

D..estroying

I..ndependence

O..ver

T..yranny

[Ghost of Philip Marlowe]

It was $120 Billion, claimed Obammie the Commie.

But what we found out afterward is that what he is doing is freezing the budget. What he didn’t tell us is that the departments whose budgets he is freezing were going to be cut $120 Billion dollars over the next few years.

So, in fact, he is allowing them to keep that $120 billion by freezing the cutbacks and he is, IN FACT INCREASING SPENDING BY $120 BILLION.

[April Lexington]

Let the mass migration begin. We either neuter the FedGov or we get the hell out. Let the “poor” pay for this socialist nightmare!

[Las Vegas Ron]

Obama is an idiot.

But, but, but he cut 20 billion!

[tflabo]

Remember November.

That's catchy sounding.... I like it! It's TEA Party banner/poster material. It has that rally cry feel to it. Let's use it....... with your permission Franky baby...!

[central_va]

Let the mass migration begin. We either neuter the FedGov or we get the hell out. Let the “poor” pay for this socialist nightmare!

I can't speak for anyone else but I live in the physical world not some hypothetical liberal experiment. The right question is where to go, not what or how to change things. That time has passed. I WANT OUT !!!!!

[April Lexington]

Join the club. My first stop was Gault’s Gulch. Too crowded these days. We need a country where its citizens swear an oath to be loyal to constitutional law and can be kicked out for sliding left...