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	<title>Minnesota Free Market Institute &#187; Tax Revenues Minnesota Free Market Institute</title>
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		<title>AP: &#8220;Plummeting tax revenues starve government just as Obama embarks on big plans&#8221;</title>
		<link>http://mnfmi.org/2009/08/04/ap-plummeting-tax-revenues-starve-government-just-as-obama-embarks-on-big-plans/</link>
		<comments>http://mnfmi.org/2009/08/04/ap-plummeting-tax-revenues-starve-government-just-as-obama-embarks-on-big-plans/#comments</comments>
		<pubDate>Tue, 04 Aug 2009 19:12:38 +0000</pubDate>
		<dc:creator>Adam Axvig</dc:creator>
				<category><![CDATA[Blog Posts]]></category>
		<category><![CDATA[Tax Revenues Minnesota Free Market Institute]]></category>

		<guid isPermaLink="false">http://mnfmi.org/?p=3172</guid>
		<description><![CDATA[<img class="size-medium wp-image-3179 alignright" title="debt" src="http://mnfreemarketinstitute.org/wp-content/uploads/2009/08/debt-300x247.jpg" alt="debt" width="266" height="219" />According to an <a href="http://www.npr.org/blogs/thetwo-way/2009/08/tax_receipts_fall_off_a_cliff.html" target="_blank">AP analysis</a>, tax revenue is expected to fall 18% this year, the largest single year drop since the great depression. According to the article, individual income taxes are down 22%, corporate income taxes are down 57%...]]></description>
			<content:encoded><![CDATA[<p><img class="size-medium wp-image-3179 alignright" title="debt" src="http://mnfmi.org/wp-content/uploads/2009/08/debt-300x247.jpg" alt="debt" width="266" height="219" />According to an <a href="http://www.npr.org/blogs/thetwo-way/2009/08/tax_receipts_fall_off_a_cliff.html" target="_blank">AP analysis</a>, tax revenue is expected to fall 18% this year, the largest single year drop since the great depression. According to the article, individual income taxes are down 22%, corporate income taxes are down 57%. The news comes as the current Congress seeks to pass several new initiatives, including a health care overhaul with an estimated price tag of  over $1 trillion.  An ambitious agenda, especially when one considers the current state of the economy.</p>
<p>Unfortunately, lawmakers have a way of skirting around the lack of funds in the treasury, borrowing. So far, Congress has borrowed 50 cents of every dollar they&#8217;ve spent this year.  The White House continues to signal they are <a href="http://www.whitehouse.gov/the_press_office/Briefing-by-White-House-Press-Secretary-Robert-Gibbs-8/3/09/" target="_blank">serious about the deficit</a>, but so far their actions have not followed their rhetoric.  Treasury Secretary Timothy Geithner, appearing on Sunday morning talk shows, <a href="http://www.youtube.com/watch?v=mAN_ILmCaAw" target="_blank">fueled speculation</a> of a middle class tax hike to balance the budget, which the White House <a href="http://www.whitehouse.gov/the_press_office/Briefing-by-White-House-Press-Secretary-Robert-Gibbs-8/3/09/" target="_blank">vehemently denies</a> is part of the solution to the deficit. There seems to be a disconnect between the priorities of the administration and the priorities of the treasury. One thing <em>is</em> clear however, at least to the <a href="http://cboblog.cbo.gov/?p=328" target="_blank">Congressional Budget Office</a> and the <a href="http://money.cnn.com/2009/07/29/news/economy/china_america_lender_respect.fortune/?postversion=2009072914">Chinese</a>, our current fiscal policy is unsustainable and needs to be addressed.</p>
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