The wonders of tax cuts
For all those naysayers who still don’t believe that tax cuts can stimulate the economy to the point that they wind up paying for themselves, I say get a grip on reality. The Federal budget deficit is falling rapidly due to the tax cuts passed by the Bush administration.
The projected US budget deficit unexpectedly has shrunk by some 100 billion dollars, thanks to an increase in tax revenue from corporations and wealthy Americans.
The White House is on Tuesday to release figures showing the budget deficit to be about 100 billion dollars less than projected six months ago, the New York Times reported Sunday
An administration official contacted by AFP would not comment on the story Sunday.
Corporate tax receipts, as well as those from the affluent Americans, is expected to exceed last year’s by some 250 billion dollars, the Times wrote.
The daily reported that tax revenues rose about twice as quickly as budget officials in President George W. Bush’s administration had anticipated.
It’s rare that I give kudos to the New York Times or the AFP, but here they actually understand that it’s tax revenues coming from affluent Americans and corporations that are responsible for the falling budget deficit. Or, in other words, corporations and “rich” Americans are paying a lot in taxes (even after the tax cuts) to the point that the deficit keeps shrinking.
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Stumble It!
July 10th, 2006 at 2:22 pm
The weak U.S. dollar is the main driver, here. Your current account is healthier, your long-term prospects are arguably weaker.