In recent months, various projections have estimated that Congress needs to pass legislation by sometime this summer to avert a default by raising the debt limit. But some pundits in recent days have raised questions about whether that schedule could be tightened any time soon like early June as tax season continues.
In a recent analysis released by Moody’s Analytics, economists Mark Zandi and Bernard Yaros warn that tax receipts in April came in at 35 percent lower than the pace of the previous year.
Zandi noted in an interview that it was “no surprise” that revenue came in lower than last year – when the government reported a budget surplus of more than $300 billion in April 2022, according to estimates by the Congressional Budget Office (CBO) ) . But he added receipts “Come even weaker than” expected.
Economists at Goldman Sachs also noted in a report last week that while they still set sometime in July when the nation will hit the so-called “X-date.” “The chances of an early June deadline have increased” when considering unwithheld income tax revenue.
The economists warned at the time that if tax revenues continued to develop similarly in the coming days, the “chances would easily tilt in favor of an early June deadline”. But they also said that unretained earnings “run at a level that makes it a tight proposition between early June and late July.”
Both reports warn that the Treasury could see another boost for non-withheld tax payments around a mid-June deadline, which could give lawmakers more time. For a better idea, experts are waiting for more data from the Ministry of Finance in the coming days.
Aris has more in a full report on TheHill.com.
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