Wednesday, May 27, 2009

Federal Revenues Cliff-Dive


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.

... 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.

"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.

Wisconsin's revenue problems are worse, of course. We showed a 35.8% drop, April/April.

But there is a commonality: both Obama and Doyle have 'Unicorns and balloons' revenue forecasts in their budgets for the next few years.

Both are wrong.


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