So what's the story regarding Revenue
anyway . . . Well, I next looked at the effect of Unemployment on
Revenue and the GDP . . . again using data that I got from the
internet. Well, I think we found it, that is . . . the
cause of the Revenue component of the United States fiscal problem.
This chart shows that when the income Tax Revenue took a big reduction,
the Unemployment went up from 4% to about 6% as in the
2000 to 2003 period. Likewise in the 2007 to 2009 period it does
the very same thing but this time the Unemployment soars to
about 10%. The GDP is retarded a little in the first period, but
really stalls and takes a "hiccup" in the second. All
other Revenue, including FICA, and Medicare, take slow-downs but
the real cause of Income Tax Revenue reduction is Unemployment.
So that's where the focus should be . . . to get the Revenue part of
the puzzle solved . . . and that means with small business incentives
and a United States fiscal policy aimed at helping the private sector
rather than taxing them and inflating size of the Federal government.