Sunday, August 30

Income Up and Tax Receipts Down. Huh?

According to this chart from the Department of the Treasury, income tax receipts were down substantially in July. In fact, it's the 4th straight month of declines and we are now well below levels seen at the bottom of the 2002 recession.

According to this report from the Bureau of Economic Analysis, personal income was up in July, albeit marginally.

How can income be up marginally while income tax receipts are down significantly?

I guess it makes sense in a world where the cure for a hangover is more whisky.

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