Slow US Tax Collections Spark Angst About Debt Ceiling X-Date
So far this year, IRS receipts are coming in slower than projected.
Photographer: Stefani Reynolds/BloombergThis article is for subscribers only.
Tax collection projections are down. Refunds are up. That’s a formula that could dampen US government revenue and, if it persists, portend an earlier deadline for Congress to raise the debt ceiling — or risk a federal payments default.
That’s a potentially worrying sign for bond market watchers and the broader economy if the trend continues. Most estimates show the US running out of funds to cover all of its obligations on time in the late summer or early fall, but some forecasters have also warned weak revenue intake could mean a breach as soon as late May or June.