Goldman Sees Anemic Tax Revenue Raising Odds of June Debt Limit

There’s a growing risk that weak tax collections pull forward the point at which the US government will exhaust its borrowing authority under the federal debt ceiling, according to Goldman Sachs Group Inc.

This tax season was expected to generate less revenue than last year, weighed down in part by diminished capital gains-related payments after markets were pummeled in 2022. But it’s shaping up to be on the weaker side of projections.

Goldman economists Alec Phillips and Tim Krupa have been assuming a 28% decline in receipts, and said a drop of 35% to 40% in April from a year ...