Posted on 05/12/2010 11:37:46 AM PDT by NormsRevenge
WASHINGTON – The federal budget deficit hit an all-time high for the month of April as government revenue fell sharply.
The Treasury Department said Wednesday the April deficit soared to $82.7 billion, the largest imbalance for that month on record. That was significantly higher than last year's April deficit of $20 billion and above the $30 billion deficit private economists had anticipated.
The government normally runs surpluses in April as millions of taxpayers file their income tax returns. However, income tax payments were down this April, reflecting the impact of a severe recession which has pushed millions of people out of work.
Revenues for April were down 7.9 percent from a year ago, dipping to $245.3 billion. That decline included a fall in individual income tax payments. That reflected not only the impact of millions of people out of work but also tax relief provided through the economic stimulus program that Congress passed in February 2009.
The back-to-back deficits in April marked a first, according to monthly budget records that go back to 1954. During that period, the government has run April surpluses in 43 of 56 years.
(Excerpt) Read more at news.yahoo.com ...
Chicago,..we have a problem...
Okay, let’s do some ciphering as Jethro would say.
This year, April revenues were $245.3 billion and were down 7.9%. That means that last year’s April revenues were $266.3 billion. If there was a $20 billion deficit, then spending must have been $286.3 billion in April 2009.
This year, there was a $82.7 billion deficit with $245.3 billion in revenue. Which means spending was $328 billion.
So, revenue went down $21 billion while spending went up by $41.7 billion. But the problem, of course, is a lack of revenue.
The large number and size of refundable tax credits is a substantial factor. Democrats have given refundable and non refundable tax credits like candy. They have created a vicious tax system in which almost 50% of the population pay little or no federal income taxes and the top 5 to 10% have confiscatory tax rates. This system creates dual incentives for non compliance and lack of effort. At the low end, working more results in loss of lucrative tax credits. At the top end, working more means entry into confiscatory taxation. Some of these refundable tax credits are given without regard to income for Democrat priorities such as renewable energy. These tax credits are misallocating scarce resources for areas with little potential for economic viability.
The revenues weren't down because of unemployment. They were down because the producers have cut back in what they do.
A lot of people do. But those are just weeds coming up through the pavement in Detroit.
Similar "green shoots" coming soon to a neighborhood near you.
...”$82.7 billion, the largest imbalance for that month on record.”
Bush’s fault.
Nice job POS Government Media!
This is an obvious unexpected improvement. I mean with all of the private sector jobs that are being created. Man, are we lucky or what?
That Bambi is a miracle worker. Time for another beer summit, Dumbass!
All hats off to you for spelling this crap out.
And the wheels on the bus go round and round...
OBAMA’S FAULT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
LOL. It’s hard to laugh, but ya got me!
TAX INCREASES!
The Revenue Collapse...as the Democratic Party progresses in their shutdown of America, USA.
Wha? I thought the recession wuz OVEH!?!?!?!
Please bear in mind..the 2007 budget was the last budget crafted by a Republican Congress in fall 2006-prior to Democrats assuming control of Congress.
Any competent RNC chair would be sure that fact was in every voters mind by October this fall.
BUSH RAN A QUARTER OF A TRILLION DOLLAR DEFICIT!!!!!
Obamasoros... Obamasaurus...
“You’re right. The Marxists own this. It’s all theirs. We’re just stuck with the debt.”
Not if we repudiate it.
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