U.S. tax receipts take a sharp tumble

[Desperadoe]

Revenues compared with the size of the economy fell to levels not seen since 1959, a report said.
By Jonathan Weisman
Washington Post

WASHINGTON - Federal tax receipts relative to the overall economy have reached their lowest level since Dwight Eisenhower was president, while government spending has climbed to the highest point since Bill Clinton declared the era of big government over, according to figures released by the Congressional Budget Office this week.

The CBO closed the books on the fiscal year that ended Sept. 30 by issuing a report that portrayed the federal government as badly off kilter even as the nation's economy shows increasing signs of recovery. Bush administration officials have long held that mounting deficits are the result of the economic downturn and that a recovery would begin to remedy the government's fiscal imbalance.<snip>

<snip>Tax revenues have now fallen for three successive years, a phenomenon not seen since the Great Depression. Just last year, corporate tax receipts fell by 11.1 percent, to just 1.2 percent of the nation's gross domestic product. That is the lowest level since 1983, and the second lowest since 1936.<snip>

http://www.philly.com/mld/inquirer/news/nation/6985984.htm

[davhill]

1. There is such a thing as a free lunch after all

Or so the Republicans blythly believe.

[izzie]

3. See we were right after all. We can have it all with out paying.

Bush will do for us.

[AP]

2. Corporations pay taxes at rate of 1.2% of GDP!!!

I've read that corps pay an effective tax rate of about 2%,

So, back of envelope calculation, about half of all income in America is earned by corporations before it's transferred out to an individual taxed at a low rate, (like dividend income or long term capital gains stock options), and the rest must be earned as personal income (ie, partnerships, unincorporated individuals, and salary).

I pay taxes at about 30% of my Gross Personal Product. Corporations clearly aren't paying ENOUGH in taxes. 1.2% of GDP. Effective rates of 2%. Then passing it out to insiders taxed way lower than 30%. Man.

The working person gets SCREWED in America.

And now they're drowing the government in a bathtub too.

[UpInArms]

4. I am so ready for all those

republicans that think we should strip the fed of all funds to start returning the SS, SSDI, medicare, medicaid and all other transfer payments back to the treasury uncashed and unclaimed.

These are the folks that do not seem to mind taking from the system that they abhor.

[DeathvadeR]

6. lol...as if that can ever happen

The Social Security Scam will make Enron look like a shop lifting incident.

[teryang]

5. I don't think $374 Billion deficit includes

...funds borrowed from FICA revenues. If FICA revenues are excluded the deficit is much larger. Does anyone know this for sure, I thought the OMB director (?) said this in his report about a month ago.

[UpInArms]

7. here's a lovely link

http://www.house.gov/apps/list/press/ms04_taylor/truths200307.html

excerpt:

TRUST FUND SURPLUSES DISGUISE THE TRUE SIZE OF THE DEFICIT. Through ten months of fiscal year 2003, the Treasury reported a budget deficit of $324 billion. However, Social Security, Medicare, military retirement, and federal employees retirement collected $183 billion in surpluses for future benefits. Outside these trust funds, the government has a 10-month operating deficit of $507 billion.

The Bush Administration predicts a record unified budget deficit of $455 billion for fiscal year 2003. That figure includes a projected Social Security surplus of $160 billion, so the deficit, not counting Social Security’s surplus, will be $615 billion. That means that 35% of non-Social Security spending will be financed by borrowing.

WE SPEND ALMOST ONE BILLION DOLLARS PER DAY ON INTEREST. In the first ten months of fiscal year 2003, the Treasury spent $289 billion on interest on the debt. Interest ranks as the third largest expense, behind Social Security benefits ($335.5 billion) and military spending ($318 billion)