Federal Tax Receipts Fall Three Times Greater Than Reported Unemployment Numbers, Suggestive of Employment Data Inaccuracy

Amid the unprecedented onset of the coronavirus pandemic, many Americans suddenly found themselves under mandatory physical distancing measures and economic lockdowns. As a result, unemployment numbers began soaring into the millions, and the US Bureau of Labour Statistics (BLS) was of course in charge of the keeping up-to-date track of the exponentially changing employment rate. However, a startling new discrepancy has emerged, which suggests the BLS statistical models may be significantly inaccurate.

According to the Monthly Treasury Statement for the month of May, the number of federal withheld income tax receipts fell by a record 33% when compared to the same time a year prior. Given that the tax receipts are strongly correlated with worker’s paychecks, the disparity between the reported household employment numbers is three times less of a decline than the reported tax receipts. Such a gap is suggestive of an inaccuracy of both the April and May unemployment numbers as reported by the BLS.

Given that government has not enacted any new legislature amid the coronavirus pandemic that would indicate any unanticipated changes in the withheld gross federal income tax receipts. As a result, a viable explanation would suggest a sudden decrease in salary and wage income would be to blame. With an unemployment rate of approximately 13% and tax receipts falling by 33%, there is a good chance that the BLS data is grossly misrepresented, and there are in fact a lot more Americans experiencing some sort of salary reduction or unemployment as a result of the pandemic.

Information for this briefing was found via CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Canadian Federal Government Extends CERB Payments For 8 More Weeks

As mentioned earlier, the Canadian federal government has been pushing a plan to extend CERB...

Wednesday, June 17, 2020, 03:49:00 PM

Tax Loophole Tucked Away in CARES Act: America’s Wealthiest Are About to Become Even Wealthier

An analysis report from the Joint Committee on Taxation (JCT) regarding tax provisions in the...

Saturday, April 18, 2020, 03:00:00 PM

Canada’s Unemployment Rate Jumps to 8.2% in May Amid Tighter Covid-19 Restrictions

Canada’s labour market continued to lose momentum last month, as widespread Covid-19 restrictions further hindering...

Sunday, June 6, 2021, 11:12:00 AM

US Loses Another 3.8M Jobs Last week; Nearly 30M in 6 Weeks.

This morning the Department of Labor released the initial jobless claims data for the week...

Thursday, April 30, 2020, 10:52:51 AM

Windsor, Oshawa Lead Spike in Joblessness as National Rate Hits Nine-Year Peak

Canada’s seasonally adjusted unemployment rate rose to 7.0% in May 2025, marking the highest level...

Saturday, June 7, 2025, 09:32:00 AM