Federal tax revenue plunged $138 billion, or 34%, in April vs. a year ago the biggest April drop since 1981, a study released Tuesday by the American Institute for Economic Research says.
When the economy slumps, so does tax revenue, and this recession has been no different, says Kerry Lynch, senior fellow at the AIER and author of the study. “It illustrates how severe the recession has been.”For example, 6 million people lost jobs in the 12 months ended in April and that means far fewer dollars from income taxes. Income tax revenue dropped 44% from a year ago.Read More
“These are staggering numbers,” Lynch says.
Big revenue losses mean that the U.S. budget deficit may be larger than predicted this year and in future years.
Higher Sales Tax on the way?
Once Considered Unthinkable, U.S. Sales Tax Gets Fresh Look
With budget deficits soaring and President Obama pushing a trillion-dollar-plus expansion of health coverage, some Washington policymakers are taking a fresh look at a money-making idea long considered politically taboo: a national sales tax.
Common around the world, including in Europe, such a tax called a value-added tax, or VAT – has not been seriously considered in the United States. But advocates say few other options can generate the kind of money the nation will need to avert fiscal calamity.
At a White House conference earlier this year on the government’s budget problems, a roomful of tax experts pleaded with Treasury Secretary Timothy F. Geithner to consider a VAT. A recent flurry of books and papers on the subject is attracting genuine, if furtive, interest in Congress. And last month, after wrestling with the White House over the massive deficits projected under Obama’s policies, the chairman of the Senate Budget Committee declared that a VAT should be part of the debate. Read More
There is More
In Raleigh, NC:
Bobby Snow is fed up with taxes now even more so over proposed new ones.Snow, who owns Bob’s Quality Car Care in Verona, is speaking out against the proposed N.C. Senate Finance Committee’s new tax reform plan that includes taxing certain services.
He and other area business owners are traveling to Raleigh June 3 for the “Take Back Our State Tea Party,” a statewide protest organized by Take Back Our State Coalition against the state’s increasing taxes.
“We get taxed enough already,” Snow said. Tea Party June 3 Read More
Obama’s policies are causing Job and revenue losses in turn raising taxes on Americans poor and rich alike. Slowly turning into a socialist America. Prices of products and food has gone up and so has taxes on all Americans and will keep going up as long as Obama is in the White House.
