Will there be any taxpayers left? Media Catching On?
We know government spend is about $6.5 Trillion factoring Federal, State, and Local governments....about half the GDP.
For this report, the AP analyzed annual tax receipts dating back to the inception of the federal income tax in 1913. Tax receipts for the 2009 budget year were available through June. They were compared to the same period last year. The budget year runs from October to September, meaning there will be three more months of receipts this year.
The numbers could hardly be more stark: Tax receipts are on pace to drop 18 percent this year, the biggest single-year decline since the Great Depression, while the federal deficit balloons to a record $1.8 trillion.
Other figures in an Associated Press analysis underscore the recession's impact: Individual income tax receipts are down 22 percent from a year ago. Corporate income taxes are down 57 percent. Social Security tax receipts could drop for only the second time since 1940, and Medicare taxes are on pace to drop for only the third time ever.
The last time the government's revenues were this bleak, the year was 1932 in the midst of the Depression.
"The numbers for 2009 are striking, head-snapping. But what really matters is what happens next," said Gale, who previously taught economics at UCLA and was an adviser to President George H. W. Bush's Council of Economic Advisers.
"If it's just one year, then it's a remarkable thing, but it's totally manageable. If the economy doesn't recover soon, it doesn't matter what your social, economic and political agenda is. There's not going to be any revenue to pay for it."
BINGO! There's not going to be any revenue to pay for it. AND $6.5 TRILLION IS A LOT OF IT.
The growing problem is things deteriorated since June based on recent corporate reports and unemployment numbers. And due to current Zombulation policies, we know continued deterioration is going to accellerate as more and more families, businesses, municipalities, school districts, and hospital will not be able to service high debt service.
Today Jefferson County laid off 2/3 of its work force and personal and business bankruptcies are skyrocketing. Finally the media is catching on that firing a worker is also firing a taxpayer...and a net reduction in tax revenues if the business is still not profitable after the job cut.
GM firing 7,500 more taxpayers (24/7 Wall St.)
Those workers will simply have to go to the unemployment line without any special severance package.
Consensus estimates are that 275,000 people lost jobs in July. GM is planning to layoff about 3% of that many people. Each time a large American company cuts a few thousand more people. the odds that joblessness will stabilize suffers.
The perverse part of the GM “downsizing” is that each worker who losses a job is a taxpayer who is likely to become a ward of the state, an unemployed person who costs money to support. GM has been firing taxpayers at an alarming rate for the several quarters.
Now we are putting the pieces together to this puzzle.
The last time the numbers were this bleak was at the trough of The Great Depression and now the outlook is even WORSE! The above doesn't even contemplate the loss of tax revenues from the millions of workers shifting from full time to part time and those getting wage cuts.
the only question is how are we going to spend billions and billions MORE on our military and other programs if there is simply no money to pay for it? Based on the current rate of deterioration in revenues and incomes by individuals and corporations from zombulation, it's likely if we tax remaining eligible citizens and businesses 100% of income, it will not be enough.
Now we enter Obama's Paradox. Tax the citizens 100% of income or cut government spending and drive our nation into a Depression not seen in over 70 years.