Cash Crunch, Press Silence: As ObamaCare Advances In Congress, Uncle Sam's Collections Continue Steep Drop

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UST12moTrailingRecs1207to1009The August Congressional Budget Office budget forecast for the fiscal year that began last month says that Uncle Sam will take in $2.264 trillion from October 2009 through September 2010. That's an increase of 7.6% over fiscal 2009's intake of $2.105 trillion.

Though it won't be official until Tim Geithner's crew releases its Monthly Treasury Statement next week, it's virtually certain that the government's collections will open the year in a deep hole compared to last year, and probably well behind what CBO expects.

Take a look at this compilation of key items from October's final Daily Treasury Statement, compared to the actual results from October 2008 and 2007:

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USTreceiptsOct09and08and07

This downward spiral continues a trend that began in the summer of 2008, as the public and especially businesses, entrepreneurs, and investors began comprehending the horrid economic implications of a Barack Obama electoral victory (assumes that Oct. 2009 will come in at $135 billion; excludes 2008's stimulus payments, which the government treated incorrectly in my opinion as reductions of receipts):

UST12moTrailingRecs1207to1009

In the intervening year since the election, fear and uncertainty have spread to consumers in general, which of course has significantly suppressed economic activity and federal collections resulting from it.

It is ironic to say the least that Congress and the Obama administration are glorifying the idea of a "public option" that would ultimately lead to government-run health care while Treasury receipts continue to shrink. If the private health insurance market disappears, so will its taxes.

To name just one example, Aetna's recorded income tax expense on its financial statements for 2005-2008 (including state and local taxes) averaged roughly $900 million per year. Put the company's health insurance segment out of business, and a large portion of those taxes would stop coming in, digging the country's and various states' debt holes that much deeper.

The establishment press paid very little attention to fiscal 2009's drop of 19.5% in receipts from economic activity, so I expect similar treatment of October's continuation of the trend. It would appear that they don't want any unsettling news getting in the way of the statist agenda.

If there's a reason to believe that this ongoing decline won't continue as long as the current bunch remains in charge and continues doing what they're doing, I want to know what it is.

Cross-posted at BizzyBlog.com.

—Tom Blumer is president of a training and development company in Mason, Ohio, and is a contributing editor to NewsBusters


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GDP is going down

Look for this to be an election issue.  Dems hid bad news.

One has to wonder if this is

One has to wonder if this is designed.  Because if it isn't, then we're being governed by the biggest pack of idiots that ever inhabited D.C.

Matt

I kinda lean towards the ''they planned the destruction of America's economy'' deally thingy.  But, yes, they are still the ''biggest pack of idiots that ever inhabited D.C."  This, in itself, can be proved by all of their blatant blunders.  Or, even more so, by their intense attacks on the most dangerous (to them) targets.  Note the Palin bashing on an election day in which she was not running.  The Left is just terrified that her coming out in support for the NY 23 'Third Party' candidate almost lost a sure thing for them (if either the D or R won).

Here's a switched around quote of sorts -
A Leftist Reads Alinsky
A Conservative Understands Alinsky

Sarah Palin: The Most Dangerous Conservative In America

 

JMHO, you understand.

If Saul Alinsky owned a news channel it would be MSNBC.  ----  Me

70 vehicle trucking company...

recepts down 45% from 2007......since we have basically owner operators only a few people have been fired.....our leading trucker

had gross bookings of 170,000 in 2007...he is doing 90,000 this year. The four owner /partners are now driving 4/5 days aweek...no profits to share so we must earn our keep the old fashioned way.  The only benefit from BAMs economic mismangement is that the lower traffic volume allows jobs to be completed faster.. ;>)

 

Paarl of Rhodesia

 

PS..this tax recept drop is the stuff of national breakdown ..dangerous

Unintended consequences.

   Quite a few people with credit cards has seen their rates go up as a consequence of the credit card law that goes into effect in January. Yours truly included. Mine went from 7.9% to 13%.

   So it went from semi-reasonable to No No No. Guess who is paying down the debt instead of spending. Ah, nice guess me and a lot of other people.

  Thank you President Obama and the Democrat Congress. 

Sincerely,

a Veteran of a 1000 psychic wars.