CNN reports that the deficit is growing while tax receipts are plummeting:
The government collected $685.5 billion in individual income taxes so far this year, a 22% drop from the $877.8 billion the government had taken in during the first nine months of 2008.
Corporate income taxes plunged 57% to $101.9 billion in 2009, down from $236.5 billion in the first nine months of fiscal year 2008.
The deficit now stands at $1.09 trillion for the first nine months of the fiscal year. It is the first time the treasury has shown a deficit for the month of June since 1991 (the June shortfall alone was $94.3 billion). Here are the CBO numbers in all their glory – or whatever appropriate word you would care to substitute.
The fact is that this economy is in serious trouble right now. A 22% drop in individual income tax receipts is bad enough. A 57% drop in corporate taxes in June is a disaster. We are out of the tax season now – one reason given for the actually more dreadful numbers last month.
People are being laid off, so companies aren’t paying as much in payroll taxes. Another reason to support all businesses instead of having the government take everything over (car companies, banks, health care, energy, etc…)