The Treasury has just come out with a big warning on Federal tax revenues. It boils down to this: Receipts are vanishing at a faster rate than expected (surprise!) and the entitlement programs are careening towards insolvency.
According to the latest estimates, Social Security will take in less in revenue than it pays out each year by 2016. That’s just a few years. And the program will go completely insolvent by 2037 if no serious changes are made.
Medicare will be insolvent by 2017.
In terms of general revenues, here’s somethign pretty crazy, for the first time in decades the government ran a deficit in April — tax month.