April Brings Showers, and a New Record Budget DeficitMay 13th, 2010 by Lee Eldridge
This is from the AP:
WASHINGTON (AP) – The federal budget deficit hit an all-time
high for the month of April as government revenue fell sharply.
The Treasury Department says the April deficit soared to $82.7
billion, the largest imbalance for that month on record. That was
significantly higher than last year’s April deficit of $20 billion
and was above the $30 billion deficit private economists had been
The government normally runs surpluses in April as millions of
taxpayers file their income tax returns. However, income tax
payments were down this April, reflecting the impact of a severe
recession which has pushed millions of people out of work.
From the great Winston Churchill: “The idea that a nation can tax itself into prosperity is one of the cruelest delusions which has ever befuddled the human mind.”
The spending by this Congress and administration remains out of control. It’s not just that tax revenues are down, but spending is up. You cannot tax your way out of a recession, or spend your way out of a recession. All the federal government is doing is digging a bigger and bigger hole. Next up are tax increases, which will only exasperate the problem. And the tax increases won’t just be on the rich. You can’t tax the rich enough to solve our budget and debt issues.