Employment taxes collected so far by the Federal Government through April 28 total $166 billion. That's down significantly from the take in March and it looks like we'll finish off the month at around $183 billion, which would be about $33 billion less than March.
April's tax take will, however, exceed last April by about $10 billion.
You may recall that my forecast for the March jobs report, which I based on the very strong employment tax deposits, didn't work out, so I am anxious to see how next Friday's number looks. Right now the forecast is for a gain of 245,000 in nonfarm payrolls.
By the way, it also looks like the total spending gains over last year have now peaked. Spending is no longer growing. This may be temporary, it may be a stall, it may be related to the debt ceiling or other budgetary constraints. I don't know. Just saying.
It's bad because it looks as if households and local governments have slowed their spending, too. If the Federal Gov't doesn't pick it up (or foreigners), the economy will be in trouble.
2 comments:
The cons in charge of Congress will not add a dime to the economy while Obama is president.
What Rich R said. R's have a better chance of taking the White House in 2016 if the economy crashes, so they will let it crash, and this time there will be no stimulus package.
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