If you've been paying attention to the news any at all, you would have read headlines about the IRS clamping down on famous tax dodgers, who owe the government billions in uncollected taxes. There is a reason for that. Tax revenue in America is at a 80 year low.
U.S. economic numbers have not been this bad since, once again, the Great Depression. It's very telling that so many aspects of the current financial crisis, which is the sole result of the crookedness George W. Bush utilized in public office, are comparable to the Great Depression, with the housing arm of the current recession-turned-depression, surpassing that of the great financial collapse several decades ago.
Had the George W. Bush administration maintain simple financial common sense, during its deceitful 8-year-term, rather than resorting to thievery, gouging and ponzi schemes as the illusion-based way to prosperity, the funds coming into the treasury would have increased, not deceased, as businesses and citizens would be thriving, not diving toward financial calamity.
Let's be clear. The only way to true financial prosperity is hardwork and diligence. There are no shortcuts, as those lead to dead ends. When a government allows lawbreaking criminals to run loose in the corporate sector, robbing, defrauding and gouging citizens, in essence devaluing wealth, expect financial disaster for the entire nation, regardless of where it is located in the world.
Federal tax revenues plummeting
WASHINGTON – The recession is starving the government of tax revenue, just as the president and Congress are piling a major expansion of health care and other programs on the nation's plate and struggling to find money to pay the tab.
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.
"Our tax system is already inadequate to support the promises our government has made," said Eugene Steuerle, a former Treasury Department official in the Reagan administration who is now vice president of the Peter G. Peterson Foundation.
"This just adds to the problem." While much of Washington is focused on how to pay for new programs such as overhauling health care — at a cost of $1 trillion over the next decade — existing programs are feeling the pinch, too.
Social Security is in danger of running out of money earlier than the government projected just a few month ago. Highway, mass transit and airport projects are at risk because fuel and industry taxes are declining.
The national debt already exceeds $11 trillion. And bills just completed by the House would boost domestic agencies' spending by 11 percent in 2010 and military spending by 4 percent...
