Thank you for your two questions.
Regarding tax payment for capital gains, the market pull back had tempered that IRS collection this year. Last April 15, 2000, the month of April tax revenue was only around $95 billion(source Wall street journal); US treasury needs about $142 billion to break even each month. So, with the budget at about $1.7 trillion; the actual spending is about $1.45 trillion. This is an order of magnitude estimate. But we have some basis to go on, from the George H. Bush administration spending of $500 billion deficit per year in the past, to gauge the future.
Regarding 401k money, the private individual's accounts are all washed out(too small an account to invest wisely). The mutual funds, however, had to place them as soon as possible less the cash for operations. So, the pump on Wall street is intact. George W.'s administration wants private retirement fund (taken out of social security tax), investing personally, is going to be a sad but true disaster. |
