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alstry (34.92)

Tax Revenues EVAPORATING in April

Recs

15

May 12, 2009 – Comments (8)

We know CA...the largest state in the Union and over 10% of US GDP saw general fund receipts DOWN almost 50%.....

Now this from the Federal Government for April......

Spending for April rose 17.5 percent from the same month a year earlier to $287.1 billion, and revenue and other income fell 34.1 percent to $266.2 billion.

The government last reported an April budget deficit in 1983, as the economy was recovering from the 1982 recession, according to Bloomberg data. The current economic slump, the worst of the postwar era, has sent the unemployment rate to a 25-year high of 8.9 percent as of April.

In a statement released on May 8, the CBO said while “in most years, the federal government has run a surplus in April because of the large inflow of tax payments due by April 15,” this year “the budget will show a deficit because of a steep drop in receipts and strong growth in spending.”

Corporate tax receipts totaled $70.8 billion for the year to date versus $171.1 billion, a decrease of 58.6 percent, Treasury said. Individual income tax collections were down 24.2 percent so far this fiscal year to $566.4 billion compared with $747.6 billion in the year-earlier period.

50% FOR CA......34% FOR THE FED GOVT???? 

MAYBE MAY WILL BE BETTER WITH ALL THE GREEN SHOOTS???????

8 Comments – Post Your Own

#1) On May 12, 2009 at 4:25 PM, alstry (34.92) wrote:

YOU HAVE BEEN WARNED!!!!!!!!!!!!!!!!!!!!!

Things are breaking apart..........this is amazing!!!!!

Advanta Corp., the issuer of credit cards for small businesses, will shut down accounts for its 1 million customers next month and seek to pay off securitized debtholders early as the recession pushes defaults higher.

Lending will cease June 10 as part of a plan to preserve capital after uncollectible debt reached 20 percent on some cards as of March 31, the Spring House, Pennsylvania-based firm said yesterday in a statement. Advanta will use as much as $1.4 billion to pay investors as little as 65 cents on the dollar to buy back securitized credit-card loans. That would be the first so-called early amortization of a trust since 2003, according to JPMorgan Chase & Co. analyst Christopher Flanagan.

20%....that is just about Alstrynomics unemployment rate.....

I wonder how many employees a million small businesses employ?????

Prepare....especially if you own or work for a small business....banks are cutting off your line of credit.

You have been warned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!  Again and Again.

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#2) On May 12, 2009 at 5:02 PM, alexxlea (66.68) wrote:

20% is a fightening number to most but is exactly in line with my expectations of this greater depression. Nice per usual alstry.

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#3) On May 12, 2009 at 5:10 PM, bridgeboy0 (30.28) wrote:

Prepare....especially if you own or work for a small business....banks are cutting off your line of credit.

What would you recommend to people in this situation?  It is easy to say 'Prepare'.  But what would you recommend to these people?  That is assuming that your entire dooms-day scenario were to come about.

Should these people quit their jobs because they work for a small business and look for job with a larger company?  How would that help them?

Of course, the company I work for is surpassing our budget goals for the current year and we're hiring, but that probably wouldn't support your thesis of financial armageddon-- so we won't talk about that.

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#4) On May 12, 2009 at 5:17 PM, alstry (34.92) wrote:

Simple bridgebaby....

Deleverage....Deleverage.....Deleverage.....before the banks cut you or your employer off.....

It's great to hear your company is doing well.  I never said 100% would go bankrupt.....just 70-90%.

Alstrynomics is all about being in the top 10%.....often in the top 1% or higher.....that is what this blog is all about....investors helping investors staying in the top 10%.....

 

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#5) On May 12, 2009 at 8:45 PM, alstry (34.92) wrote:

LOTS and LOTS of MOSTS on Records!!!!!!!!!!!!!!!!!!!!!!!!!

May 12 (Bloomberg) -- Home prices in the U.S. dropped the most on record in the first quarter from a year earlier, led by California and Florida, as banks sold foreclosed properties.

How many worst on records are we going to have?????

Is that a green shoot???  We don't have much further to fall now before there is not much further to fall....

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#6) On May 12, 2009 at 9:55 PM, angusthermopylae (38.77) wrote:

I'm a small business owner--and we have no credit cards or bank loans.  The only credit lines that exist are tabs/accounts where we purchase supplies (paper, pens, printer ink, film, etc.)

On the one hand, we'll never be the next [insert name of Big Business in that industry]...no big boom, no McMansions, no yachts.

OTOH, it's times like these that make me feel like my credit-paranoia was well founded.  As long as people are buying our services (and it looks like they are), then we'll keep food on the table and employees paid and happy.

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#7) On May 13, 2009 at 10:19 AM, angusthermopylae (38.77) wrote:

I re-read my comment, and realize my point is not apparent:  I'm basically in the position alstry extolls in #4.  Most of the time, it makes me nervous since it's sorta living hand-to-mouth.

But in times like these, I feel like a freakin' genius, since bigger companies have the banks and creditors sweating them...because they are getting nervous...because....well, you know.

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#8) On May 13, 2009 at 1:25 PM, alstry (34.92) wrote:

angus,

you are right where you should be right now....

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