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John Galt, call your office: Federal Revenues Plunge

August 05, 2009

Two unrelated related headlines from the Tax Policy Blog:

Biggest Drop in Yearly Tax Receipts Since 1932

Tax Burden of Top 1% Now Exceeds That of Bottom 95%

When you count on rich folks to pay for government, you put the government on a revenue roller-coaster. The income of the "rich" is very volatile. When you need it the most - during a recession, when demands on the government rise - that's just when rich folks lose a lot of income. States that have jacked up taxes on their high earners are having the same problem. Easy come, easy go.