Tax Receipts. Another Leading Recession Indicator?

Tax receipts are falling, which has historically preceded economic recessions. In a recent #MacroView post, we discussed the issue of rising debt levels on economic growth and increasing debt levels. To wit:

“While Washington continues a seemingly unbridled spending spree under the assumption ‘more spending’ is better, debts and deficits matter. To better understand the impact of debt and deficits on economic growth, we must know where we came from. The chart shows the 10-year annualized growth rate of the economy over time.

What should immediately jump out at you is that the 10-year average economic growth rate was around 8%, except for the Great Depression era, from 1900 through 1990. However, there has been a marked decline in economic growth since then.”