I wonder if many may have missed it or its significance:

quote
The U.S. federal government budget widened to $192.8 billion in February as tax receipts plunged to the lowest level in 14 years, the Treasury Department reported Wednesday. It’s the second largest monthly deficit on record, exceeded only by $237.2 billion gap in October. For the first five months of the fiscal year, the deficit has increased by a half trillion dollars to a record $764.5 billion. Outlays were flat compared with a year earlier at $280.1 billion, while receipts dropped 17% to $87.3 billion, the lowest since February 1995. In February, individual income taxes fell 64% to just $8.7 billion. That’s the lowest monthly total for individual income taxes since May 1985.

http://www.marketwatch.com/news/story/Budget-deficit-widens-10-receipts/story.aspx?guid={E595148D-3756-4F39-A1A6-773ABA0039A8}

One of the major causes of huge deficits in downturns is not just the spending but, the loss of tax revenues that were projected and that the budget was based on.

This decline in tax revenues is going on in cities and states, as well and at alarming rates in many states. The Federal government may well have to borrow billions more just to keep social spending by states going.

This impacts earning by companies that depend on government spending and spending by government employees and at some point, this will be reflected in the markets if this trend continues as many expect.

Related Posts:

• The US is living in fantasyland
• Don’t Steal. The Government hates Competition.
• “SPENDS TOO MUCH, TAXES TOO MUCH, AND BORROWS TOO MUCH”
• The government borrowing needs is increasing but Geithner says otherwise.
• Let’s see, that passing of the crisis would be in 2020? 2030?

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