AP ENTERPRISE: Biggest revenue drop since 1932

Isn't this another example of the inexperience of this administration that they couldn't figure out this would happen? Surely they blame this on Bush, but even so, why couldn't their expert advisers see this coming? Seems to me (Monday morning QB) anyone working this everyday should have seen it. We hear nothing of cuts and the promised $100 million in 90 days couldn't even be met. The "CHANGE" from capitalism to socialism is what we're getting. - MBC

http://www.comcast.net/articles/news-general/20090803/US.Plummeting.Taxes/

"...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..."

"...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,"

"..."The numbers for 2009 are striking, head-snapping. But what really matters is what happens next," he said. "If it's just one year, then it's a remarkable thing, but it's totally manageable. If the economy doesn't recover soon, it doesn't matter what your social, economic and political agenda is. There's not going to be any revenue to pay for it."

A small part of the drop in tax receipts can be attributed to new tax credits for individuals and corporations enacted in February as part of the $787 billion economic stimulus package. The sheer magnitude of the tax decline, however, points to the deep recession that is reducing incomes, wiping out corporate profits and straining government programs..."