Skip to comments.Surprising Jump in Tax Revenues Curbs U.S. Deficit [Democrats sadden.......]
Posted on 07/08/2006 10:20:32 AM PDT by Sub-Driver
Surprising Jump in Tax Revenues Curbs U.S. Deficit By EDMUND L. ANDREWS
WASHINGTON, July 8 An unexpectedly steep rise in tax revenues from corporations and the wealthy is driving down the budget deficit this year, even though spending has climbed sharply because of the war in Iraq and the cost of hurricane relief.
On Tuesday, White House officials are expected to announce that the tax receipts will be about $250 billion above last year's levels and that the deficit will be about $100 billion less than what they projected six months ago. The rising tide in tax payments has been building for months, but the increased scale is surprising even seasoned budget analysts and making it easier for both the administration and Congress to finesse the big run-up in spending over the past year.
Tax revenues are climbing twice as fast as the administration predicted in February, so fast that the budget deficit could actually decline this year.
The main reason is a big spike in corporate tax receipts, which have nearly tripled since 2003, as well as what appears to be a big rise in individual taxes on stock market profits and executive bonuses.
On Friday, the Congressional Budget Office reported that corporate tax receipts for the nine months ending in June hit $250 billion nearly 26 percent higher than the same time last year and that overall revenues were $206 billion higher than at this point in 2005.
Congressional analysts say that the surprise windfall could shrink the deficit this year to $300 billion, from $318 billion in 2005 and an all-time high of $412 billion in 2004.
Republicans are already arguing that the revenue jump proves their argument that tax cuts, especially the 2003 tax cut on stock dividends,
(Excerpt) Read more at nytimes.com ...
That just can't be - I have been hearing over and over how the deficit is continuing to grow exponentially because of all the tax cuts to the mega-rich - the ad that uses a Paris Hilton impersonation (a rather bad one at that).... The ad encourages us to contact our Senators to tell them we don't want any more tax breaks for the mega-rich...
maybe instead of Democrats sadden it should have read New York Times sadden.
Remember...to the jurno-tards at the NYT, they are the informed and the rest of us are just the misinformed, naive, masses in dire need of enlightment.
Group Think is so pevasive at the NYT, that the place is beyond all hope and should just be marginalized, and their publication should be put to more practical purposes...fish wrap, bird cage liner, packing box stuffing, and (last but not least) puppy blotter...
Once again, Bush's fault! LOL
I'm coming around to supply side economics. I've been a conservative more because of social issues than economic ones but I have been watching the federal government revenue growth since the tax cuts and it's amazing. It is also having a ripple effect on state government revenues. They have also increased dramatically in the past couple of years. Of course revenue can alway be spent faster than it's taken in. It time to start telling liberals we might need a tax increase to slow the economy. I'm sure they'll appreciate the comment.
I should have added: there's no reason that taxes shouldn't be lower -- even if that actually decreasing, rather than increases government revenues. In fact, it's easy to argue that decreasing government revenues is a good thing. However, the point of this article was that revenues increased despite tax reductions -- and that sort of thing has its limits.
Now if they can only control the spending...
Added a trillion in national debt...huh?
I'll give you three guesses what that spending has been on over the last three years...but you are only going to need one.
Actually I think both are deeply saddened, especially since November is not that far away. Their platform of criticism is rapidly eroding.
And all this IN SPITE of the terrible economic impact of 9-11, an expensive war on Islamofascistism, rebuilding of Iraq, Afghanistan, and the ever-increasing Federal budget with its myriad of wasteful programs.
If Albore had been successful in stealing the 2000 election, we'd be in an economic sinkhole right now.
Tax RATE cuts always work!
The national debt was artificially low at the end of Clinton's term considering he spent practically nothing on maintaining our military forces. Had he been investing properly in national defense, the debt in 2000 could easily have been 4 trillion.
Considering we were then sucker punched on 9/11, 1.2 trillion to fix our military and rid the world of vermin is money well borrowed in my book.
Only for those who enjoy arguing about everything under the sun. I prefer to argue in favor of increases in my income, regardless of taxes. Not everyone feels this way --some would rather live penniless and in squalor if it meant less taxes. Personally, I wouldn't mind paying an extra $thousand in taxes as long as it meant an extra after-tax $3thousand in my income.
In general, this is what's been happening nationwide.
Historically unprecedented increases in Medicare/Medicaid. Massive increases in Social Security. Across the board increases in all other socialistic spending programs, designed to keep incumbents in office.
There's your three. The WOT is a drop in the bucket compared to the rest of the budget (just in case that is the "one" you were talking about).
"In less than three years, the U.S. economic pie has expanded by $2.2 trillion, an output add-on that is roughly the same size as the total Chinese economy..."
Where are the voices that were so quick to cry "prosperity!" during the Klinton years?
So does spending constraint.... which is the other half of the equation that both parties appear to be missing at the moment.
Tax cuts work, every time they are tried.
I know some drunken sailors and they resent that. The Congress gives them a bad name.
Only for those who enjoy arguing about everything under the sun.
The more money government gets, the more money government will spend. Curtailing government revenue would be a good thing. Tax cuts are good because they let people keep more of their own money, despite the fact that they increase revenues.