We here at Zero Hedge have gotten tired of the endless propaganda and lies coming from the US Treasury regarding its "prudent" cash management. As we demonstrate weekly, gross tax withholdings have collapsed in 2010 compared to the even disastrous 2009. Through the 14th week of the calendar year (not fiscal), cumulative tax withholdings in 2010 are $477.9 billion, $13.5 billion less than the $491.4 billion in 2009. Yet regardless of what the only organic source of revenue for the Treasury looks like, the Treasury (and IRS) are issuing ever increasing tax refunds with the abandon of a drunken sailor. The chart below compares how many more refunds on a cumulative basis have been issued in 2010 compared to 2009. Oddly, it is also $13 billion, however in the wrong direction.
A side by side comparison of weekly individual refunds indicates that as we get closer to April 15th the government is putting ever more money in the pockets of taxpayers. The week of April 9, 2010 saw 21.5% more refunds in 2010 compared to 2009.
Net out refunds from gross withholdings, shows just how blatant the lies is that the Treasury is collecting more money than previously. On a cumulative basis 2010 compared to 2009 has seen a net $26.5 billion less withheld by the Treasury. We fail to see how this number is in any way an indication of efficient money management. Coupled with record unemployment benefit outlays, surging discretionary spending, and record net bond issuance, and the US Treasury is rapidly realizing that should it be unable to fund itself using its Bernanke-Jiabao Tungsten credit card, it is all over.