Posted on 05/07/2011 3:25:40 AM PDT by Scanian
The federal government notched its 31st straight month in the red in April, though individual income tax receipts are “significantly” higher than expected and made the deficit mush smaller than it otherwise would have been, the Congressional Budget Office said Friday.
With the economy looking stronger than expected, income tax receipts are up 26 percent, or $130 billion, over 2010 at this point, the CBO said, calling the inflow “the result of increased amounts withheld from paychecks and strong growth in payments accompanying 2010 tax returns,” which were due last month.
The better-than-expected tax revenue, which comes despite last December’s tax-cuts deal, has tamped down what would otherwise be a massively exploding deficit.
Still, the April shortfall of $41 billion marks the 31st straight month — going back to the financial crises at the end of the Bush administration — that the government has run a deficit. That’s more than twice as long as the previous record on file, going back to 1980.
Overall, CBO officials said the government is already $871 billion in the red through the first seven months of fiscal year 2011.
The CBO’s figures are estimates. The final numbers will be released by the Treasury Department next week.
(Excerpt) Read more at washingtontimes.com ...
Amazing -- with the "official" unemployment at 9% and U-6 at 15.9%. A whole lot of bankruptcy attorneys must be really busy!
Funny how higher taxes are keeping the deficit “in check”, yet we owe $870+ BILLIONS so far this year. If this is keeping things in check, I’d like to know what out-of-balance means.
A friend works for a firm that collects bad debts and has never been so busy in his life.
It took me three weeks to get him to write a letter for me.
I never knew the meaning of a deficit being “in check” allowed for a yearly deficit approaching a trillion dollars. I guess when the deficit reaches a quadrillion dollars it will be considered “a bit out of line”.
"A friend works for a firm that collects bad debts and has never been so busy in his life."
"It took me three weeks to get him to write a letter for me."
My cousin is a psychiatrist and he tells me he's never been busier!
I'm not busy at all -- and I'm thanking my lucky stars that my daughter finished with school and has a real job now. Some of my colleagues have not been so fortunate. Talking to my tax lawyer this year, he tells me I'm not doing badly compared with a lot of his other clients. However, due to the steep slope of the income tax curve, we've been coasting for the last couple of years and with carry-forwards of overpayments haven't needed to make any estimated tax payments. January 2012 will be the first time I'll need to make an estimated tax payment to the Feds since January 2009.
Maybe this has something to do with the treasury's reported increase in revenues -- things aren't getting much better with small businesses and the self-employed, but at least they aren't getting any worse.
You cannot tax the rich through income taxes. If you really want to tax the rich, find another way. Income taxes penalize entrepreneurs, professionals, and other high-earning individuals but the truly high net worth individuals have tax attorneys, estate planning, off shore accounts, immigration laws, charitable giving, gifting and IRS code loopholes and quirks,and trusts. There are billionaires who pay no taxes at all.
So the next time you hear a DemonRat call for “taxing the rich”, he does not mean Lloyd Blankfein, Jamie Dimon, Warren Buffet, Donald Trump, or Bill Gates. They mean anyone trying to save for their childrens’ future. They want to rob your kids. Didn’t you know your kids are the evil rich?
http://www.fms.treas.gov/mts/mts0407.pdf
April 2007
Highlight
The impact of large individual tax deposits resulted in budget receipts of $383.6 billion and a
surplus of $177.7 billion.
http://www.fms.treas.gov/mts/mts0311.pdf
339.047B Receipts
-188.153 Deficit
“the result of increased amounts withheld from paychecks”
Yep....there Obama’s “tax cut” they keep telling us we got.......
Hmmmm...according to that chart the outlays exceeded the revenues. And yet they still had a surplus. I wish my checkbook worked like that.
They could tax the “rich” bloody and it still wouldn’t balance the budget.
They need to cut spending, cut taxes to promote growth, and increased economic activity and the take will be a lot better that “soaking the rich.”
Maybe not as satisfying to the jealous SOBs who worry about that sort of thing but the end result has always been better whenever cuts are tried (along with cuts).
IRS refunded $12 million to dead people in scam
http://money.msn.com/taxes/article.aspx?post=e319fcb3-fa07-41d7-ad05-c829df544437>1=33029
I agree with you it’s a spending problem not a revenue problem. However, RATS say they want to “tax the rich”, but they increase income tax. WHAT THEY SAY AND DO ARE TWO DIFFERENT THINGS.
Why do you think these rich DemRats support increased taxes???? BECAUSE THEY DON’T EVER PAY IT!!!!! WE DO!!!!! Why do yo think rich banksters are DemonRats? Do you think they vote to increase THEIR OWN TAXES??? NO!!!!!! Why does Warren Buffet say to increase tax rates?? Becasue he doesn’t have to pay it!!!
Wealth is in the assets, not the income.
I’m not buying any of this nonsense.
I’ll wait for the real year end numbers.
That’s right-—most of them DON’T and they are eaten up with jealousy for anybody who makes enough that they DO pay.
That’s what class warfare is all about. They would rather see some big shot brought down to poverty level than get a responsible job and make a decent income themselves.
Once again the evidence: liberalism is a mental disorder.
I guess I’m a little slow but I took it as meaning that fat-revenue April, with Tax Day in the middle of it, helped a little with the deficit because lots and lots of checks are written to the IRS in April.
Cut taxes-—corporate taxes, especially-—and we’ll see revenue streams like that in more months than just April.
Silly me!!and I thought the Congress’ spending resulted in our debt crisis!!!
We are in total agreement here. However, what I wanted to point out is that the tax structure of the United States benefits the power elite. It’s the difference in paying the income tax rate—or 15% capital gains. The class warfare stuff is just political rhetoric. If you have enough assets and can hire the right tax attorneys, you can reduce your income tax liability to point it’s irrelevant. That’s why you hear rich RATS calling for higher taxes (income taxes). When’s the last time you heard Warren Buffet and Bill Gates calling for a higher capital gains tax? That’s why we basically have ONE NATIONAL PARTY. Rats and Pubbies agrgue about a $14 trillion debt versus a $14.1 trillion debt. When Pubbies get to Washington they realize the game is rigged. The heaviest burden falls on people who have high salaries—but who don’t have sufficient assets with which to lower their liability. It’s not as simple as Pubbies versus RATS.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.