ANALYSIS
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Tax Revenue Takes Biggest Dive Since Great Depression
By Harry Kimball
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Posted Aug 3, 09 2:07 PM CDT
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(Newser)
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US tax revenue is set to shrink 18% from last fiscal year to the current one, ending in October—the largest falloff since 1932, the AP reports. Individual income-tax receipts are off 22%, and corporate revenues have sunk an astounding 57%. “Our tax system is already inadequate to support the promises our government has made,” one analyst says. “This just adds to the problem.”
While Social Security tax revenue has sunk only slightly, the poor economic climate could mean the already troubled institution runs out of money almost a decade ahead of projections. “The numbers for 2009 are striking, head-snapping. But what really matters is what happens next,” a watcher says. “If the economy doesn't recover soon, it doesn’t matter what your social, economic and political agenda is.”