No surprise: Federal tax revenues plummeting

The Associated Press reports:

Individual income tax receipts are down 22 percent from a year ago. Corporate income taxes are down 57 percent. Social Security tax receipts could drop for only the second time since 1940, and Medicare taxes are on pace to drop for only the third time ever.

I'm surprised that Social Security isn't down much more, given the high unemployment rate. The disproportionate declines in personal and corporate income taxes are an indicator of how progressive the tax system has become.

I don't believe that the government's economic models predicted tax revenue declines this steep. The overdue mid-year budget review should be interesting. I predict it will be released on a Friday afternoon.