econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 24 April 2016

Heres What Excise Tax Collections Tell Us About The US Economy

by Lee Adler, Wall Street Examiner

The Federal Government posts a reconciliation of the previous month's tax receipts by detailed line item on the 8th business day of the following month.

It's useful to parse excise taxes because they are based on unit volume, not total sales, and because their calendar effects are less severe due to the twice monthly payment schedule. Notably, gross miscellaneous excise tax collections were down by 2.2% covering the mid month February-March period while gas and aviation fuel tax collections rose.

The Federal Highway Trust fund taxes collected on gasoline rose by 4.8% in March after rising by 8.9% in February. Lower gasoline prices are inducing increased consumption. Americans are driving more as they spend their gas savings on... wait for it... gas, among other things, but not booze and cigarettes. Weekly data from the US EIA shows gasoline consumption up nearly 8% on an annual basis as of the week ended April 8.

Weekly US Gasoline Demand

Liquidity moves markets!

Click here to learn how you can follow the money.

As an aside, I wrote in the weekly Pro Trader Federal Revenue Report back on March 13:

Without getting into an in depth supply/demand analysis, if oil prices haven't bottomed already, the fact of falling supply and rising demand supports higher prices. With Goldman and the other managers of public sentiment widely calling for lower oil prices, no doubt they are doing the opposite of what they are recommending [that the public should do, taking the other side of their recommended trade], in recognition of the supply/demand fundamentals.

We should also recognize that one of the key properties of oil as a commodity is that it is a money substitute, even more so than gold is, for the biggest leveraged speculators and investors in the world. With the ECB and BoJ going increasingly insane, the move back into oil as a money substitute looms as another reason supporting a reversal.

Aviation fuel related excise tax collections also rose in February-March. They were up by 4.1%.

Miscellaneous excise taxes, essentially sin taxes covering alcohol and tobacco, fell by 2.2% versus March 2015 after falling by 2.4% in the prior month. While gas and aviation fuel taxes show increased consumption, the drop in sin taxes suggest that the US economy is sinking into recession. Either that, or US consumers of these products have suddenly become more health conscious.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical Opinion Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



You can also comment using Facebook directly using he comment block below.





Econintersect Opinion


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
The Surprising Pevalence of Surprises in Export Specialisation
The Destruction of the Existing Workforce
News Blog
Early Headlines: Asia Stocks Mixed, Dollar Down, Oil Up, China May Replace US In TPP, Trump Freezes Feds' Hiring, Trump Files 'Secret' Transfer Papers, May To Visit China And More
January 23, 2017 Weather and Climate Report - NOAA Continues ENSO Neutral Denial
Documentary Of The Week: China's Wealth, Collapse, And Environmental Nightmare
Where Trump Stands On Twitter
Is This Really The Final Word On Whether Calorie-restricted Diets Make You Live Longer?
Electric Mobility Has A Long Way To Go
Average Gasoline Prices for Week Ending 23 January 2017 Fell Over 3 cents
What We Read Today 23 January 2017
Badass Grandpa Tokyo Drift!
Hurricane Matthew Clocks Top Wind Speed For 2016 At 101 MPH
Consumer Debt Growth May Have Stalled In Q3
Measuring Americans' Expectations Following The 2016 Election
Infographic Of The Day: Seven Negotiation Techniques
Investing Blog
Netflix And Co. Surpass DVD And Blu-ray Sales
The Future Of Online Sales
Opinion Blog
Bill Maher 2017 Season Premier
Trumping World Trade
Precious Metals Blog
A Slow Start For The Week Would Be Constructive For Gold
Live Markets
23Jan2017 Market Close: Wall Street Down, But Pares Morning Losses By The Closing Bell, Crude Rises Back To Normalcy And The US Dollar Nears Slipping Below 100
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government































 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved