Is it just me, or whenever the media reports good economic news it's always "unexpected"?
Sharp Increase in Tax Revenue Will Pare U.S. Deficit
For the first time since President Bush took office, an unexpected leap in tax revenue is about to shrink the federal budget deficit this year, by nearly $100 billion.
Hmm, maybe Bush was right that cutting various tax rates would actually increase tax revenues. In fact, if Congress could hold off on the spending increases, we'd probably have close to a balanced budget, even while we're fighting a war or two.
2 comments:
Howard ... I completely agree on Congress' ability to flush any extra cash down a rat hole (more likely into their own pockets indirectly) ....
However, I think you're stretching a bit here with regard to increased tax revenues actually being part of GWB's plan when he cut tax rates. We know he cut tax rates because (1) He's Republican (that's what Republican's do) and (2) Because it benefits everyone, but even moreso the wealthy (that's also what Republican's do).
Then there's also the issue that he's a friggin' moron incapable of making the economic correlation between lower tax rates providing greater economic growth thereby fueling greater revenues, resulting in higher taxable income to the treasury.
Here's another possibility ... RIDICULOUSLY low interest rates spurring borrowing that in turn feeds investment in efficiencies and R&D within companies that, in turn, produces greater revenues resulting in higher taxable income.
I'm a registered Republican who disagrees with GWB on many, many issues and did NOT vote for him last November.
Peace.
Erik Klein
Good to hear from you - thanks for taking the time to post!
I don't agree with everything Bush does either, but I'm paying less taxes and giving more to charity which I figure balances things out.
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