No surprises here. At this point it should be patently clear to any rational person that Accross the Borad Tax Cuts on personal and business income, dividends, and capital gains INCREASE tax revenues to the treasury-the exact opposite that liberals who predicted expanding deficits “as far as the eye can see” and the “wrost economy since Herbert Hoover.” Revenues increased to the treasury every time taxes have been cut accross the board in the 20s (Harding/Coolige), 60s(JFK),80s(Reagan), 1997(GOP Cap Gains Cuts signed nto law by Clinton), and the 2003 Bush Tax Cuts.
The Congressional Budget Office has lowered its estimated of the size of the US federal deficit for the fiscal year 2006 largely as a result of higher-than-expected tax revenues.
The CBO, a non-partisan arm of the US Congress, now projects a deficit of $260 billion for fiscal year 2006, about $111 billion less than it estimated in March for the Presidentâ??s budget. At 2.0% of gross domestic product, the 2006 deficit would be smaller than the deficits recorded in the past three years â?? 3.5% in 2003, 3.6% in 2004, and 2.6% in 2005.
So far this fiscal year, the federal government has run a deficit of about $239 billion, CBO estimates, $64 billion less than in the first 10 months of last year.
The Treasury recorded a surplus of $20 billion in June. That sum is about $1 billion more than CBO had estimated on the basis of the Daily Treasury Statements, largely because spending in June was slightly lower than expected.
Tax Revenues Continue To Shrink the US Federal Deficit. Now is the time for Congress and the President to come together and make the 2003 Bush Tax Cuts that have been overwhelmingly successful permanent to ensure long term sustained economic growth.
I agree with Senator Frist’s assessment:
â??The CBO deficit estimate just released highlights the efforts that have been taken to significantly reduce this yearâ??s deficit. Strong revenue growth and spending restraint played a vital role in the reduction of the deficit to $260 billion,” he said in a statement.
“This new estimate, which is nearly $80 billion below the agencyâ??s estimate last winter, highlights the combined benefits of a strong, resilient economy working in tandem with Republican policies to restrain both taxes and spending,” he added.
Great News!
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