Tweet
For Uncle Sam, a rare April deficit
NEW YORK (CNNMoney.com) -- The government ran up a $21 billion budget shortfall last month, the first April deficit in 26 years, the Treasury Department said Tuesday.
The total deficit for the first seven months of the fiscal year hit $802 billion, compared to a deficit of $153 billion in the same period a year earlier.
April is usually a good month for Uncle Sam because many taxpayers file their returns and send checks to the Treasury. But this year, tax receipts have fallen sharply because of the recession and the government's response to it.
The downturn is a triple whammy to government revenue: fewer people are working and providing income tax dollars; corporation tax receipts are on the wane; and tax cuts aimed at juicing the economy reduce paycheck withholdings.
At the same time, government is spending massive amounts to try to recapitalize the nation's financial system and spur economic growth.
NEW YORK (CNNMoney.com) -- The government ran up a $21 billion budget shortfall last month, the first April deficit in 26 years, the Treasury Department said Tuesday.
The total deficit for the first seven months of the fiscal year hit $802 billion, compared to a deficit of $153 billion in the same period a year earlier.
April is usually a good month for Uncle Sam because many taxpayers file their returns and send checks to the Treasury. But this year, tax receipts have fallen sharply because of the recession and the government's response to it.
The downturn is a triple whammy to government revenue: fewer people are working and providing income tax dollars; corporation tax receipts are on the wane; and tax cuts aimed at juicing the economy reduce paycheck withholdings.
At the same time, government is spending massive amounts to try to recapitalize the nation's financial system and spur economic growth.
Comment