The money rolls in
The federal treasury is getting a surge of tax revenue, which could mean a smaller budget deficit than originally predicted. Let the argument begin. NY Times gives you the back-and-forth:
Republicans are already arguing that the revenue jump proves that their tax cuts, especially the 2003 tax cut on stock dividends, would spur the economy and ultimately increase revenues.
"The tax relief we delivered has helped unleash the entrepreneurial spirit of America and kept our economy the envy of the world," President Bush said in his weekly radio address on Saturday.
Democrats and many independent budget analysts note that overall revenues have barely climbed back to the levels reached in 2000, and that the government has borrowed trillions of dollars against Social Security surpluses just as the first of the nation's baby boomers are nearing retirement. "The fact is that revenues are way below what the administration said they would be a few years ago," said Thomas S. Kahn, staff director for Democrats on the House Budget Committee. "The long-term prognosis is still very, very bleak, and the administration doesn't have any kind of long-term plan."
One reason the run-up in taxes looks good is because the past five years looked so bad. Revenues are up, but they have lagged well behind economic growth.
Comments
Why do I not feel comforted and confident?
Could the Repuglicans be a little less than confident also with an obscure move to raise the debt ceiling AGAIN hidden on page 121 of the 151 page budget?
With passage of this budget, the House will have raised the federal borrowing limit by an additional $653 billion, to $9.62 trillion. It would be the fifth debt-ceiling increase in recent years, after boosts of $450 billion in 2002, a record $984 billion in 2003, $800 billion in 2004 and $653 billion in March. When Bush took office, the statutory borrowing limit stood at $5.95 trillion (Thanks Washingtion Post)
So revenues are up. Goodie!
Posted by: docholliday | July 8, 2006 08:59 PM
One reason the run-up in taxes looks good is because the past five years looked so bad. Revenues are up, but they have lagged well behind economic growth.
This pretty much sums it up.
Posted by: Spirit | July 8, 2006 09:13 PM
"Democrats and many independent budget analysts note that overall revenues have barely climbed back to the levels reached in 2000, and that the government has borrowed trillions of dollars against Social Security surpluses just as the first of the nation's baby boomers are nearing retirement."
So the great Social Security Scare is actually just smoke and mirrors? Tax monies collected for one purpose but diverted to many others. Actually the big hog at that trough is funding a war. All we have to do is to collect the debt. Lots of luck!
Posted by: Anonymous | July 8, 2006 10:01 PM
So much for NeoCon's idea of starve the beast. The fat beast just pigs out via Federal credit card.
Posted by: LWood | July 9, 2006 12:28 AM
It's a shame, a disgusting shame, that you democrats cannot give our leader any compliments during a time of war. Our leader has made wise decisions for country. Examples: 1. When our leader took over, tax cuts were needed because the economy was doing so well. He delivered. 2. When the economy went in the tank, (we all know it was 9/11 and nothing else) tax cuts were needed to spur on the economy. Our leader delivered. 3. When our leader's God called on him to free people in Iraq, he did that. Look how good that is going over there, the new hospitals that have been built are full and thriving. Does the liberal media report on that? No, they and their masters in the Democratic party focus on the bad and not the good in Iraq.
Posted by: Sean Hannity & Joe Liebermen | July 9, 2006 07:08 AM
It's a shame Republicans seem to be so gullible. It's an election year, Is it any wonder why we are hearing about a new spin on the national deficit or surplus in the state.
Posted by: Anonymous | July 9, 2006 07:22 AM
You Dems are amazing. When you don't have enough revenue you cry its not enough. Then when you have TOO MUCH revenue you
STILL cry its not enough. Every last one of you sounds like my ex-wife. I got rid of her and Arkansas will get rid of you.
Posted by: Give Me Back My Money Now | July 9, 2006 10:11 AM
The reason revenues are surprisingly high (but only to people who only read the contrasting spin between the Parties in the terribly uninsightfull news accounts) is because of the passage of foreign "repatriation" provisions in recently passed bills in Congress. Corporations are bringing back foreign revenues and paying taxes on them at a reduced rate within a window. Ultimetely this spike will be provide lower total revenues than the former law.
Posted by: Anonymous | July 9, 2006 10:14 AM
Flat earthers unite. While reports of a round earth pour in, our fearless Democrat (I mean socialist) leaders urge us to remain patient while assuring us that tomorrow these reports will be discredited as just "spin".
ps. There has been an huge tax hike for the rich. I know the AR. Times will make this a headline soon. The top 10% of tax payers are now paying more than 60% of all income taxes-up from less than 50% in 2003. Cut taxes on those people out of fairness.
Posted by: real deal | July 9, 2006 12:20 PM
what a load of crap.....
Posted by: Anonymous | July 9, 2006 12:47 PM
It doesn't take long for money....even (especially) money we don't have....to make fools of us all, does it?
Posted by: bodybybush | July 9, 2006 01:01 PM
The Iraq war money pit has a spillover benefit that some of that couple trillion $ gets spent over here and helps boost the economy.
If all of it were spent over here instead, the unemployment rate would be ZERO and we would be recruting workers from south of the border instead of fretting over sending them back.
An EXTRA TRILLION a year dumped into the economy would have us growing faster than China.
But instead we are BORROWING & SPENDING. Or more accurately, SPENDING & BORROWING.
Posted by: Citzen | July 9, 2006 04:25 PM