Friday, September 23, 2011
Federal tax receipts start to collapse
It was only a matter of time with the economy so weak. Federal tax recreipts are starting to fall when viewed on a year-over-year basis. They're still up versus last year, but starting to drop.
This suggests two things: a) the deficit will rise and b) when they go negative year-over-year the economy will have hit bottom. (Automatic stabilizers kicking in to support output.)