Deficit nearly $100 billion below earlier estimates (Bush tax cuts works)

WASHINGTON - Surging revenues and a steady economy have led the White House to project that this year's federal budget deficit will drop to $333 billion, nearly $100 billion below earlier estimates. "We're ahead of projections now," President Bush said Wednesday. Bush said the improving deficit picture vindicated his stewardship of the economy and budget.

"These numbers indicate that we're going to cut the deficit in half faster than the year 2009 — so long as Congress holds the line on spending," Bush said following a Cabinet meeting.

Just last February, the White House predicted a $427 billion deficit for the budget year ending Sept. 30 and red ink totaling $1.1 trillion over five years. The five-year deficit improvement would total $326 billion.

Last year's deficit of $412 billion was a record in dollar terms, though many previous deficits in the mid-1980s and early 1990s were larger when measured against the size of the economy.

The new estimates reflect significant improvement in revenues, which are so far coming in at levels 15 percent higher than last year.

"The nation's budget picture has improved dramatically," said the new White House report. "Due in large part to tax relief, the economy is strengthening and the growing economy is producing the tax receipts necessary to cut the deficit far faster than was initially predicted.

Have you heard about the news regarding the deficit? How about this from the New York Times today by Edmond L. Andrews: "For the first time since President Bush took office, an unexpected leap," an unexpected leap, "in tax revenue is about to shrink the federal budget deficit this year by nearly $100 billion," ladies and gentlemen. "Unexpected" by who? Unexpected by Democrats, unexpected by liberals, unexpected by socialists, maybe. Why was it unexpected?

"Well, because of Bush's tax cuts. Why, you can't grow the economy; you can't raise tax revenue by cutting taxes!"
This is another reason why the mainstream press and the liberals are falling out of favor, because people know now that you cut taxes, and you increase economic activity. You create more taxpayers, and you create more tax revenue! The deficit is $333 billion instead of 450-some odd dollars. The deficit's come down over $100 billion, with what? Not tax increases. We haven't increased any taxes, oh, but we're collecting more taxes. How is that possible, folks? This is what is so infuriating. This guy who wrote the Times story, Edmond Andrews may not know it, he may still believe that supply-side economics actually is nothing more than rich people going to the homes of poor people and stealing their money. But that's what supply-side economics is. If you listen to any liberal describe it, it's nothing more than the rich stealing from the poor. Figure that out, mathematically, and I'll give you an A. How can you steal what doesn't exist? How can you get rich stealing from people who don't have anything? But that's what they say. So here it worked for Reagan, and it gave us unbridled economic growth, and if we're just patient -- the Bush tax cuts kicking in now, the economy roaring, unemployment lowest it's been in four years. The Democrats tried to create panic over that, they tried to create panic over any number of issues since Bush took office. That's another reason why they're on the Rove business, because not one thing that they have attempted to create panic about has stuck with the American people -- and that's why I say, again and again, they're making their last stand.

They tried to destroy Bush on the economy. They tried to destroy Bush on the high gas prices. They tried to destroy Bush on the war on terror, the war with Iraq. Every little thing they can come up with. They tried to destroy Tom DeLay. They have tried to destroy any number of people. Ashcroft. Gonzales, the author of the torture memos, now they want him on the Supreme Court. Talk about flexible principles. It's one thing to have him as attorney general, "Well, we gave him a really rough time there but yes, he authored torture memos." You want this guy to be on the Supreme Court now, huh, libs? You think people aren't wise enough to follow you on this? The reason people are wise enough to follow you is because they're being told the alternative point of view from the one you express; the reason people in the media don't get it is because you don't think that the people in the alternative media have credibility with the American people. It is you in the mainstream media and on the left who are slowly but surely losing your credibility with those people, on the basis of your own behavior, your own work, your own reporting. Hear again, another classic example: one hundred billion-dollar reduction in the deficit, tax revenues unexpected? I expected them. A whole lot of Americans expected increased tax revenue with a cut in taxes. It's not a surprise to me. Why is it a surprise to people who refuse to see it work every time it's tried? Because they don't want it to work and they're not interested in it working and they don't give it half a chance because it can't possibly be. You can only raise tax revenue by raising taxes. No, the exact opposite happens. You raise taxes and you reduce tax revenue. Ask the guys who built the yachts when the luxury tax went into effect in the Clinton years.

The guys who built the boats on whom new luxury taxes were to be paid lost their jobs because Americans started buying boats overseas to escape the new luxury taxes. Ask people in New Jersey who have car dealerships, when New Jersey raised the sales tax on automobiles, New Jerseyans went over to Pennsylvania for lower sales taxes to buy their vehicles. Ask the government of New Jersey. And what did they do? Raise taxes again even more to make up for the loss and plunged the state further into turmoil and problem. Ask the airlines. What do they do when they lose riders? They lower fares to get more people and can you get on an airplane that's not full anymore today? You can't. And it may turn out that some airlines are going to show a profit this year I read the other day. This is not a surprise to any of us. This is not a surprise to people who actually follow what happens in the economy rather than rely on a bunch of experts who predict it and are always wrong, and then end up being surprised and say that, "Why, this is totally unexpected." So they are out there saying, "Bush lied. People died," meaning the Iraq war. Tax cuts will ruin the economy. The truth of the matter is that Bush told the truth. Millions of oppressed people were saved in the Middle East, and the United States has not been attacked since 9/11. Tax cuts have increased tax receipts by growing the economy; unemployment is down, and things are looking up -- unless you're a liberal Democrat, in which case you are desperate as you can be because the last thing you want to see is success anywhere.

You don't want to see conservatives succeed. You don't want to see conservatism succeed. You don't want to say tax cuts raise revenue to the treasury. You don't want to see a war in Iraq actually save lives of the people in Afghanistan and Iraq. You don't want to see any success story whatsoever. You only want to see the dismal gloom that you predict -- and in the midst of all this, the Democrats are worried about Karl Rove. And why? Because they cannot say the economy is in the tank anymore. They cannot say Bush is killing people. They cannot say all these things that they've been saying since 2001 because everything they've said, everything they've accused, every crisis they've tried to create has proven to be false and phony. They've been wrong. I've gotta take a-- (interruption). Yes, he did, that's true. Another point: Mr. Snerdley just said, "You can't go out there and conduct a war without raising taxes. Why, you can't do that! Why, the deficit is going to balloon sky high. The debt to our children and grandchildren! Why, you can't do that!" Hey, we're fighting a war; we got tax cuts; we're lowering the deficit, and we're raising tax revenue. Everything they say is wrong. It's been wrong my whole life. Everything the left says is wrong. Every policy they have is wrong; every belief they have is wrong. They did say that. You can't conduct a war without raising taxes. Where is the sacrifice to the American people? The American people need to sacrifice. I remember Pelosi saying it, Joe Biden saying it. Hell, for all I know Joe Wilson was out there saying it somewhere. He may as well be one of them. He's never right about anything, either, phony baloney plastic banana good time rock 'n' roller publicity seeking camera-face-time jerk.

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