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July 09, 2006
Surprise, Surprise...Not!
Why is everything a surprise to liberal economists?
An unexpectedly steep rise in tax revenues from corporations and the wealthy is driving down the projected 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.
Granted, the article also states that the revenue grew twice as fast as they predicted. What is more important is that whenever taxes are cut, the revenue to the government increases. Moreover, the article points out that most of the money is coming in from the...are you sitting down?...the wealthy.
Bush Lied, the Rich Tithed!
Posted by Aaron at July 9, 2006 09:49 AM
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Comments
(1) The wealthy are currently paying a lower percentage of their income than they were before the tax cuts, so the increased government revenue from that demographic indicates that they are making more money than ever. And where is the extra income coming from? Redistribution from the rest of us.
(2) The wealthy are earning more from their stock holdings because certain corporations are earning more. The OIL companies posted RECORD PROFITS from the high prices at the pump, not because of tax cuts, but because of HIGH OIL PRICES. All companies involved in supplying the construction industry got a major boost not because of tax cuts, but because of Hurricane Katrina which created a shortage of building supplies and forced prices and corporate profits up substantially.
(3) Just because government revenues went up after a tax cut, doesn't mean that the tax cuts were responsible. This is just the typical Republican way of taking credit for every postive thing that happens and blaming the Democrats for everything else.
There is no way that we are better off because the wealthy are making more money and the government is reaping more from them.. We are paying A LITTLE BIT less in PERCENTAGE of taxes but what we gained went up in the flames of higher prices.
So, as the OIL corportaton charge us over THREE times what we were paying for gas in 2003, we are supposed to be happy because government revenues are up but still are not at the level they were during the Clinton Administration?
Talk about a party not having an issue they can win on. I can't wait for November.
Posted by: KeithS at July 10, 2006 06:08 PM
I'm kinda curious why this years deficit being only the 4th largest in history instead of the largest like the last three years is being cast as an economic victory.
Let's recap: The year before Bush took office we had a $284b budget SURPLUS. This year, after racking up $3t in additional debts over 5 years, we have a $286b DEFICIT. And because CORPORATE profits are up so much that the unsupportable budget shortfall is $100b less then expected, that's proof that this silly supply side economic policy is working? Sounds like more of that "fuzzy math" the Bush likes to talk about.
Posted by: IaintBacchus at July 11, 2006 01:26 PM