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


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
Main Home
Analysis Blog
A Short Note on a Connection Between Marginalist Economics and Folk Medicine
Run A High Pressure Economy? Janet Yellen Does Not Understand the Problem
News Blog
A Pony And His Beloved Teddy Bear Reunite After Being Apart For 3 Years
October 2016 Kansas City Fed Manufacturing Remains In Expansion
September 2016 Median Household Income Not Statistically Different Than The Previous Month
September 2016 Pending Home Sales Index Improves
22 October 2016 Initial Unemployment Claims: Rolling Averages Marginally Worsen
Durable Goods New Orders Marginally Declined in September 2016
Infographic Of The Day: 41 Interesting Facts About Tesla Motors
Early Headlines: Asia Stocks Down, Oil Lower, Great Lakes Wind Power, Chinese Moving Mfg To US, Tesla Reports Profit, Dems Forecast To Take Senate, China's Debt And More
How Miller Stacks Up Against His Draft Class
Inside The Machine: How Two Nobel Winners Taught Us How Companies Tick
Healthcare's Dirty Little Secret: Results From Many Clinical Trials Are Unreliable
The Cleveland Indian's Unique Use Of Andrew Miller
What We Read Today 26 October 2016
Investing Blog
Thirsty For Income? How To Thrive In This Yield Desert
Apple's First Annual Sales Decline In 15 Years
Opinion Blog
A Hard Brexit And Reduced Migration Won't Benefit UK Workers
What Triggers Collapse?
Precious Metals Blog
Inflation Surging As Platinum Signals Stock Market Decline
Live Markets
27Oct2016 Market Close: Wall Street Closes Fractionally Lower, Interest-Rate Stocks Outweighed Gains In Healthcare, Market Indicators Bearish
Amazon Books & More

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

Crowdfunding ....



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


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved