On July 8, 1932, the Dow Jones Industrial Average hit its lowest point of the Great Depression — 41.22
The media, as far as I can tell, almost completely ignored yesterday this story from the Associated Press about federal tax receipts, which have dropped in 2009 at a rate not seen since 1932. For the first six months of the year, individual income tax receipts were down 22 percent from a year ago. Corporate income tax receipts were down 57 percent.
For the month of April, the biggest month for collecting taxes, individual income taxes were down 44 percent, and corporate taxes were down 64 percent.
I wish someone could explain to me how individual income taxes can be down 22 percent if the unemployment rate is 9.5 percent. I also would like to understand how the earnings news can be good on Wall Street if corporate income taxes are down 57 percent.
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