Tuesday, May 12, 2009

First Tax-Month Budget Deficit Since 1983

The U.S. reported the first April budget deficit in over 25 years, specifically $21 billion on a significant drop in individual and corporate tax receipts. April, which is traditionally the strongest budget revenue month due to the peak in individual tax revenue collection was unable to buck the trend in second derivatives and green shoots and is likely an indication of just how much worse the economy will get with traditional Treasury revenue sources rapidly disappearing. The Congressional Budget Office, which forecasts a $1.75 trillion budget shortfall for the Sept. 30 ended fiscal year, had estimated a deficit of $19 billion, further demonstrating that green shoots are merely rose-colored glasses.

Bulls will point out that at this point the U.S. will merely print its way out of any deficit, as the government is more than happy to take the place of any and all taxpayers, and the resultant record debt/GDP ratio will be merely the "next administration's problems."

Sphere: Related Content
Print this post
blog comments powered by Disqus