U.S. tax revenues still falling drastically

The U.S. federal deficit is expected to be a record $1.8 trillion, as tax receipts fall drastically. The federal government is expected to take a record loss this year.

In what will be the worst year on record for the United States Treasury since the Great Depression, federal tax receipts are 18 percent lower than at this time last year. The worst part of the news is that the receipts are only through June of 2009. The budget year runs from October to September, meaning there are three more months of receipts. The Associated Press reported Monday that the loss will make 2009 the worst year for the federal government since the Great Depression. Even numbers this bad were not expected, according to William Gale, of the non-partisan Tax Policy Center. "The numbers for 2009 are striking, head-snapping," said Gale. The declines can be contributed to the fledgling economy and with Congress writing more and more federal checks, the federal piggy bank could be in trouble. "Our tax system is already inadequate to support the promises our government has made," said Eugene Steuerle, a former Treasury Department official in the Reagan administration who is now vice president of the Peter G. Peterson Foundation, told the AP. Other factors included increased federal tax credits included in the economic stimulus package. What matters most, however, according to Gale is "what happens next." "If it's just one year, then it's a remarkable thing, but it's totally manageable. If the economy doesn't recover soon, it doesn't matter what your social, economic and political agenda is. There's not going to be any revenue to pay for it."