Federal revenues rose nearly 3 percent from fiscal year 2009 to FY2010. But virtually the whole increase came from higher corporate income taxes and a more than doubling of Federal Reserve earnings. Preliminary data in the Congressional Budget Office’s October Monthly Budget Review reveal that revenue climbed $57 billion to $2.16 trillion in the fiscal year that ended last month (see graph). Combined with a $67 billion fall in outlays, that revenue gain cut the federal deficit by $125 billion to a still astronomical $1.3 trillion, or 8.9 percent of GDP. Bad as that is, it’s well below 2009’s deficit of 10 percent of GDP.
It's like we all work for a huge conglomerate that has as its main business a giant hedge fund that can also print its own money.
7 comments:
Not very comforting, huh?
Not in the least..........
And how would corporate income tax revenues be faring without temporary assistance from that huge conglomerate's hedge fund?
Struppster,
I take it you think they would be worse.
So do you think it's a good idea for our central bank to prop up the profits of private corporations?
1. Oh I know they would be worse. Even the Mises people agree that that revenues would have collapsed in the absence of Fed. intervention.
2. I think it's a good idea for the Fed. to do whatever is necessary to fulfill it's dual mandate. If propping up profits of private corporations becomes a biproduct of this mandate in many cases, so be it.
If it were just a byproduct, I wouldn't mind either. At this point it seems to be just about the only product of the government effort.
Strupp...
so what if the QE caused 35% inflation and a 15% increase in tax revenue?
ignoring fake propaganda like the CPI, inflation is rising at about 10% a year!!
if you think that you can print tax revenues you think like a child. (in a nation run by children)
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