US State and Local Governments’ Worst Decline in Income Tax Revenues Ever Recorded

The year-on-year percentage fall is at a historical second-worst, surpassed only by the Great Financial Crisis.

Alarmingly, federal tax receipts continue their downward trend, nearing an unsettling -10% on a year-on-year basis – a warning signal of the ongoing economic downturn.

There is a stark contradiction between these indicators and the overvalued state of financial assets, highlighting an underlying and worsening economic situation.