Just a quick preview of what March is looking like with 2 business days left:
The story so far is that refunds are up as expected, hurting net revenues, while corporate tax deposits are down 52% to just $18B compared to $38B last year. I wonder if companies pulled a lot of cost forward into 2016 thinking Trump would cut taxes in 2017? That’s not looking like such a safe bet anymore. The deficit currently sits at 119B…an estimate thanks to the “Extraordinary Measures” currently deployed. With April 1 on a weekend, a lot of outlays are going to be pulled forward and paid March 31, so a deficit in excess of $150B is pretty likely, though that will make April a little better….depending on the strangth of tax receipts we could post a $200B surplus…hopefully they don’t experience the same collapse we are seeing in corporate taxes.
We will have the March finals next week so check back for an update. Also, please check out my latest over at seeking alpha Back To The Future: King Coal Takes Back His Crown From Natural Gas where I investigate the surprisingly quick resurgence of coal in the last few weeks….hint…it’s due to the increase in the price of natural gas….not Trump’s tweeting 🙂 For updates sign up as a follower…Enjoy!!