I was wondering when someone besides the “Tea Party” folks noticed the problem!
AP – The government will have to borrow nearly 50 cents for every dollar it spends this year, exploding the record federal deficit past $1.8 trillion under new White House estimates.
US to borrow 46 cents for every dollar spent (AP)
Tue, 12 May 2009 04:08:19 GMT
Recently I have been fascinated by the BizzyBlog coverage of the federal revenue shortfall. Here is the last post on the subject,
April 2009 Federal Receipts Update: Down 35%, Pending Final Monthly Report. I was not terribly concerned what the administration thought since they are largely irrelevant to the discussion but I was curious what the CBO thought. Last week they publish a report which said:
The sharpest drop was in corporate receipts; net corporate receipts, largely representing corporations’ first quarterly tax payment for 2009, declined by about $29 billion (or 69 percent). Nonwithheld receipts for individual income and payroll taxes””mainly amounts paid with income tax returns filed in April fell $84 billion (or 36 percent). Refunds of individual income taxes increased by $11 billion (or 24 percent). That change in net receipts associated with income tax filings was roughly in line with CBO’s expectations.
Although it was a non-event for most folks, last week the Treasury had a “terrible” auction for the long bonds. I expected the Treasury to find a lot of difficulty selling long bonds since the Obama stimulus plan screams inflation alert and the Chinese said they are not going to finance our mess. So today I see a main stream media article that says the “US to borrow 46 cents for every dollar spent”. I think the average person understands the problem now. On May 19th California has several referendums that mainly increase taxes. Once again California will lead the way for the United States. Although I think they are not happy about leading this adventure.