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US Individual Income Tax Revenues -26%

Recs

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January 12, 2010 – Comments (0)

From the CBO Blog reviewing the December financials of the USoA, which can be found here.

Revenues

In the first two months of this fiscal year, revenues were about $42 billion (or 14 percent) lower than they were in 2009. The three primary sources of receipts showed declines relative to last year: Individual income taxes decreased by $37 billion (or 26 percent), corporate income taxes fell by $10 billion, and social insurance taxes fell by about $1.5 billion (or 1 percent). Offsetting those declines was an increase of $7 billion in receipts from the Federal Reserve, primarily because of a shift in its portfolio to higher-yielding investments.

I find the closing sentence interesting. $48.5 billion in lost tax revenue is offset by an increase of $7 billion in receipts from the Fed Res. I guess a single Fed Res dollar coming is is worth seven tax revenue dollars. Not sure how that works, but there you have it. ;)  Actually, the really interesting part is that the Fed Res is moving in to higher yielding investments. I wonder what those could be. And, as an added bonus-random-though: doesn't higher yield generally mean higher risk? 

From the same report:

Social Security outlays up 10% ($11 billion)

Medicaid spending up 25% ($9 billion; American Recovery and Reinvesment Act [ARRA, aka "The Porkulus Package] was responsible for about two-thirds of that)

Medicare payments up 11% ($7 billion; mostly thanks to that prescription program we had to have)

Unemployment benefits up 200%+ versus prior year (approx. $14 billion)

Sing it with me, people!  Happy Days Are Here Again, The Skies Above Are Clear Again!

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