From USA Today: A study released by the American Institute for Economic Research says The Internal Revenue Service that tax collection is down $138 billion dollars or 34% in April vs. April 2008. This is biggest drip since April 1981.
As the economy fall, revenue dries up, says Kerry Lynch of AIER. Lynch said,”It illustrates how severe the recession has been.”
In the United States, these has been 6 million jobs lost in last year alone which mean fewer tax dollars. Income tax revenue is down 44% year on year basis.
This in turn means bigger budgets deficits for years to come.