tax cuts, like abstinence, work every time they are tried...
Posted on 07/08/2006 6:30:23 PM PDT by SierraWasp
Unexpected tax revenue to shrink U.S. budget deficit
By MarketWatch Last Update: 3:35 PM ET Jul 8, 2006
NEW YORK (MarketWatch) -- An unexpected spike in revenue from corporate taxes, individual stock market profits and executive bonuses is curbing the projected budget deficit this year, according to a media report.
The White House on Tuesday is expected to say that tax receipts are about $250 billion higher than they were a year ago, rising twice as fast as the administration forecast, the New York Times reported Saturday.
As a result, the budget deficit will be about $100 billion less than the White House predicted six months ago, the paper said.
The tax receipt windfall has been building for months, but its size and effect on the deficit surprised budget analysts, given the high costs for the war in Iraq and hurricane relief.
Congressional analysts told the Times that the greater-than-expected tax receipts could cut the deficit to $300 billion this year from $318 billion a year ago.
Corporate taxes that have nearly tripled since 2003, executive bonuses, and higher individual taxes on stock market profits are fueling the spike in tax revenue, the paper reported.
The Congressional Budget Office said Friday that corporate tax receipts rose 26% for the nine months ending in June compared with the year-ago period.
Democrats and MSM hit hardest.
Tax cuts raise all boats!
No surprise.
Worst economy ever, duh!
Tax cuts spur the economy, which creates more wealth, which raises tax revenues. Stunning news to anyone who only learned about the 1980s from an Ivy League journalism professor.
Geez, even JFK knew that.
Another fine example of the Feds overtaxing individual Americans and businesses. If Bush and the GOP Congress would cut welfare state spending and abolish the new trillion dollar Prescription Drig Program, just think how much lower taxes would be.
Tax cuts spur the economy, which creates more wealth, which raises tax revenues.
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But socialists do not want the public to have their wealth -- that is against the Godless liberal religion. Only the state is entitiled to monies. The individual shall not keep his wealth.
Hello Karl Marx !!! Now, where did I put my copy of the Communist Manifesto??
Guess we'll have to blame it on Bush's tax cuts "for the wealthy."
If the President and the Republican party don't start shouting this from the roof tops, no one will know. The MSM does not want to report this. There were no questions about the economy on Friday because the MSM knows it will make the President look good. The majority of Americans think the economy stinks because the Democrats keep telling them so. This is meaningless unless the President gets the word out.
Excellent news, but it would be interesting to see more detailed analysis - a part of this could be sustainable, and another part could be in the nature of one-time tax windfall. So I'd like to see how much of it could be reasonably projected forward.
This is good news. Now if only they would do something about the spending...
How can this be???? I thought Tax Cuts were bad - confused.
Bush must be cooking the books! < / sarc
the Hoover economy rolls on.
tax cuts, like abstinence, work every time they are tried...
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