Here’s What Plunging Tax Collections Mean for the Markets

Tax collections fell slightly year to year in February. The IRS published new withholding schedules early in the month and employers began adjusting withholding tax collections.

Year to year comparisons for purposes of estimating the strength of the US economy will be questionable until January 2019 because it is all but impossible to accurately adjust for the impact of the tax cuts. But the data does show us how much the tax cut is costing the US Treasury. That’s money that it needs to raise in the market by selling debt. And that is critical information.

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Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also provide analysis and charts for David Stockman's Contra Corner which I developed for Mr. Stockman. I’ve had a wide variety of finance related jobs in the past 44 years, including a stint on Wall Street in both analytical and sales capacities. Prior to starting the Wall Street Examiner I worked as a commercial real estate appraiser in Florida for 15 years. I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. My perspective is not of the Ivory Tower. It is from having my boots on the ground and in the trenches of the industries that I analyze and write about today. 

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