Employers Lost Their Minds in April

This is a syndicated repost courtesy of The Daily Reckoning. To view original, click here. Reposted with permission.
[This post on Employers Lost Their Minds in April is from Lee Adler. To find out more about his work – visit Wall Street Examiner by clicking HERE.] Federal tax collection data for April was both strong and weak. Withholding taxes showed a massive gain. All other taxes were soft or down.
The big increase in income taxes boosted the US Treasury’s cash holdings, but this will be temporary as tax collections dry up and spending continues. At the same time the US won’t be able to sell new debt as it bumps up against the debt ceiling. Treasury cash should dwindle in May. The government will need to continue to rob internal accounts such as pension funds to pay the bills. Experts suggest that the debt ceiling must be raised by October 2, or the government will default.
Meanwhile, there’s a unified message in the conflicting tax data. Employers have gone into a state of delusional euphoria as they increase hiring well beyond what they need. They are following the stock market, not their sales. Excise taxes, demand for gasoline, and personal income taxes suggest that the economy is weak. Employers are always the last to get the news.

This post was published at Wall Street Examiner by Lee Adler ‘ May 4, 2017.