US Tax Problem: US Tax Indiv Receipts Down 44%, Corporate Down 65% (TBT, TLT, UUP, UDN)

Tax receipts tell the story.

The US is in serious financial trouble.

In April, receipts were down 34% from last year. Individual income tax receipts fell 44% and corporate income taxes down 65%.

No smoke and mirrors will help hide this. Tax revenue in April was the first shortfall in 26 years. Can the government manage a budget during contracting economic conditions? Not without a cut in spending. Who will do that? It’s not politically correct. Spend, spend and spend is Congress’ motto. The Ponzi scheme, however, is coming to an end.

For the first 7 months of 2009, the deficit was at $802 billion. It was -$153 billion a year ago.

A year ago the government borrowed $200 billion. So far this year it has borrowed $1.2 trillion and counting.

This spells trouble in River City. No one seems to care. The parties continue and the media ignores the news. They say the recession will be over by summer. We say stop drinking the Kool-aid.

Government spending is up by 20% now and reaching $2 trillion. It was $1.7 trillion a year ago. The day of reckoning is approaching.

This is from Chuck Butler, President of Everbank World Markets:

“The OMB reported yesterday that they were revising the Budget Deficit for this fiscal year, which ends Sept. 30th. Get this folks… The OMB says that this year’s deficit will be 12.9% of GDP, and next year’s deficit will be 8.5% of GDP… OUCH! Now… Let me put these figures into some framework… First of all, back in 1985, finance ministers of the world met at the Plaza Hotel in New York, and were scared to death that the U.S. deficit was out of control… At that time it was 2.5% of GDP! The Plaza Accord called for a weaker dollar to deal with this, what was called out of control, deficit.

In 2001, the U.S. Deficit reached 4.5% of GDP, which historically meant that a country experiencing debt levels at 4.5% of GDP would experience a currency crisis, or at the very least a major debasing of the currency….

Now skip forward to today… 8.5% of GDP? Where the heck are the finance ministers of the world now, and why are they scared to death regarding this out of control deficit? The only country crying wolf at these figures is China! Oh… And one more thing about the 8.5% of GDP… This is the highest level our debt has been in 60 years, since the end of World War II…”

clipped from www.marketwatch.com In April, receipts were down 34% at $266.2 billion, compared with $403.8 billion a year ago. In April alone, individual income tax receipts fell 44% from a year earlier to $136.7 billion. Corporate income taxes were down 65% to 14.6 billion. Payroll taxes were down 0.7% to $91 billion.