Posted on 07/08/2006 6:30:23 PM PDT by SierraWasp
Unexpected tax revenue to shrink U.S. budget deficit
By MarketWatch Last Update: 3:35 PM ET Jul 8, 2006
NEW YORK (MarketWatch) -- An unexpected spike in revenue from corporate taxes, individual stock market profits and executive bonuses is curbing the projected budget deficit this year, according to a media report.
The White House on Tuesday is expected to say that tax receipts are about $250 billion higher than they were a year ago, rising twice as fast as the administration forecast, the New York Times reported Saturday.
As a result, the budget deficit will be about $100 billion less than the White House predicted six months ago, the paper said.
The tax receipt windfall has been building for months, but its size and effect on the deficit surprised budget analysts, given the high costs for the war in Iraq and hurricane relief.
Congressional analysts told the Times that the greater-than-expected tax receipts could cut the deficit to $300 billion this year from $318 billion a year ago.
Corporate taxes that have nearly tripled since 2003, executive bonuses, and higher individual taxes on stock market profits are fueling the spike in tax revenue, the paper reported.
The Congressional Budget Office said Friday that corporate tax receipts rose 26% for the nine months ending in June compared with the year-ago period.
You never know - these Venetians were very cunning and might have hit upon some taxation our glorious congressional staffers would kill to plagiarize.
Unexpected by who? Not me, damn twits. Tax cuts ALWAYS work.
Well... That's great cause I ain't never had no poor people hire me fer nuthin!!!Hire'n people fer nuthin is what makes people rich.
Git offa their backs so's they can git rich but not to donate it to liberal leftist foundations and PBS like Bill Gates and the Oracle of Omaha are doin!!! That's gonna end up not helpin much of anybody more than once!!! What a waste of Billions!!! (unless it's used to TEACH people ta git rich)
Wull... As yew know... I ain't had no lernin, nohow!!!
" not to donate it to liberal leftist foundations and PBS like Bill Gates "
Did you notice that Gates, the liberal creep, is funding LaRaza?
The thing that I'm working up to here is... This honyock tells the Senators in his confirmation hearings that... get this now... "Tax cuts do not pay for themselves!" I see this as a headline of MarketWatch.com and then it disappears a little later when I go to grab it and post it here for FReepers to peruse!!!
Yes, this is the Goldman Sachs dude that's all plugged into China and it's governmental economic Communists. Remember the "Red Chinese?" Why am I uneasy with GWB appointing this dubious dude to this key position... why???
I wonder if he is surprised by this article like the MSM writers and editors that produced it... I wonder... Do you wonder, too??? It make you wonder, doesn't it!!!
Don't worry, they'll make up for it by another huge spending increase in time.
The Bush boys display one disturbing trait that Dubya has done pretty good on so far. renegging! But I still get nervous when appointees tell Democrat Senators stuff like "Tax cuts don't pay for themselves!"
I don't feel any better about that, than when the "Oracle of Omaha" Buffet tells Schwartznegger CA needs to rescind Prop 13 because Cauleeforneeuns don't pay enough in property taxes!!!
A budget deficit less than 2.5% of GDP is small potatoes.
liberal knee jerk reaction: IT'S BUSH'S FAULT!
.....several seconds pass......
[quietly] oh s@#$, it really is, isn't it?!
Tax cuts increase revenue to the treasury. The proof continues.
I am not worried about the deficit. It is big enough to take care of itself. --Ronald Reagan
Thanks for the ping! Supply Side University is presenting a summer "lecture" series on this very subject.
"Let's cut taxes" introduction found here:
http://www.wanniski.com/showarticle.asp?articleid=5091
Part I found here:
http://www.wanniski.com/showarticle.asp?articleid=5105
Part II found here:
http://www.wanniski.com/showarticle.asp?articleid=5117
Part III found here:
http://www.wanniski.com/showarticle.asp?articleid=5125
we need to insist they give Bush the line item veto he's asking for and watch the deficit plummet -
this is bad news for the Rats who have done everything in their power to increase the deficit - for a political hammer
Yeah, I love how he talks about two beach homes he own very near each other, and because of Prop 13 he pays like five times the property tax on one that he does on the other. I agree that this is a flaw in Prop 13, but he leaps from that to assuming that it's the one with the low tax bill that's wrong, which is completely stupid. I assume it's the one with the high tax bill that should be brought down. Why should the state get a windfall just because a home changes hands? They're not all of a sudden building more roads, schools, etc.
I fully agree!!!
I thought Congress already gave the Line Item Veto to Clinton who signed it and the Supreme Court vetoed it as too much power with the Executive Branch over the doings of the Legislative Branch.(I almost typed "Legislative Breach")
Truth has away of slipping out ;o)
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.