Less Revenue. More Spending. What's New?

The Wall Street Journal reports that corporate tax revenues are falling by 14% compared to last year even as federal spending soars. Wonder if Paulson can get us one of those zero percent Visa cards?

With turmoil rocking financial markets and housing woes slowing the economy, corporate tax revenues are falling and leaving big holes in the federal budget.

The Treasury Department reported Monday that corporate income-tax revenue over the first seven months of the fiscal year, which began Oct. 1, was $171.1 billion, 14.7% lower than during the same period a year earlier. Meantime, government outlays rose 7.3%, to $1.7 trillion, and the federal deficit ballooned to $152 billion, 88% higher than the same period last fiscal year.

"The budget picture is growing darker and is set to get much darker in the next few months, as the impact of the tax rebates hit the government's bottom line," said Mark Zandi, chief economist at Moody's Economy.com, a research firm.