Posts Tagged ‘individual’

Under Obama Federal Spending Way, WAY Up, And Federal Revenues Way WAY Down

March 3, 2010

Let’s see, if you lost your job, and then you decided to massively increase your spending – you know, buy a mansion, buy a yacht, buy a Ferrari – what do you think would happen?

If you don’t know, you’re about to find out on a national level.

We keep hearing from the mainstream media that Messiah Obama has led us out of the recession.  But it’s a great big shining lie.

The fact of the matter is that even as Obama is spending more in 20 months than George Bush did throughout his entire high-spending 8 years combined –

Mr. Obama cannot dismiss critics by pointing to President George W. Bush’s decision to run $2.9 trillion in deficits while fighting two wars and dealing with 9/11 and Katrina. Mr. Obama will surpass Mr. Bush’s eight-year total in his first 20 months and 11 days in office, adding $3.2 trillion to the national debt. If America “cannot and will not sustain” deficits like Mr. Bush’s, as Mr. Obama said during the campaign, how can Mr. Obama sustain the geometrically larger ones he’s flogging? (Source: Wall Street Journal)

– the federal government is simultaneously taking in record low income tax withholdings from businesses and individuals.

From Zerohedge:

February was not an auspicious start to Obama’s record budget deficit-busting plans. The Daily Treasury Statement for the full month of February was just released, and it disclosed that while corporate tax withholdings, net of refunds, actually climbed marginally to $3.4 billion from $(3.4) billion in February 2009, individual tax withholdings plunged to a multi-year low of $30.7 billion. Combined, the two items also posted a multi low of $34 billion, less than the previous recent low from February 2009 when the first leg of the Greater Depression was allegedly at its zenith (see chart below). We can’t wait to hear how the “recession is over” brigade will paint this particular data point.

On a rolling twelve month basis, the government has to plug an LTM hole of about $250 billion in annual tax withholdings. The LTM individual tax withholdings have dropped to an unprecedented low of $1.275 trillion, compared to the $1.43 trillion as of September 2008 when the recession was about to start. If the government is unable to resurrect tax withholdings to historical levels before the interest rate on the $7.9 tillion in marketable debt starts climbing (even as the $7.9 is set to become about $10 trillion in just over a year), call it a ballgame.

Zerohedge’s Tyler Durden asks, “We can’t wait to hear how the “recession is over” brigade will paint this particular data point.”  Knowing the mainstream media, they won’t “paint” it at all.  They simply won’t cover it.  They are “gatekeepers,” after all, which means they protect you from information that they have concluded you don’t need to know.  If it doesn’t fit their narrative, it doesn’t exist.  You know, like in the novel 1984.

Oh, we’ve had the odd report.  For example, there was this one back in August from CBS (the only one I could find):

Tax receipts are on pace to drop 18 percent this year, the biggest single-year decline since the Great Depression.

That sounds really bad.  And you’d think the media would be all over it, keeping track of it and regularly reporting on an issue that is clearly very important.  But no.  It makes Obama look bad.

If tax witholdings under Bush were at a record low, you KNOW the media would be crawling all over it.  But it doesn’t fit their leftwing narrative to let you know.  So they don’t report it.

For the record, the “Bush tax cuts boosted federal revenue,” we find out in the Washington Times.  But the media weren’t too keen on letting you know that factoid, either.

Those two arrows in the bottom graph representing business and individual tax withholdings could well end up stabbing the heart and killing the U.S. economy.

You’d think this was something important that the media would report.  But nope.  Sorry.

Obama has done nothing to fix the real problems with our economy that are SCREAMING out for solutions.  He’s been far too busy trying to impose his ObamaCare boondoggle to be bothered with economic reality.  Meanwhile, we’re heading for a double-dip recession and very bad news.

And the smiley-faced media propagandist aren’t going to change that fact by glossing over or spinning the bad news and hyping anything remotely positive in order to make their messiah look as good as possible.  Personally, I’m sick and tired of the media reporting that everything is “unexpected” when it doesn’t fit their agenda.