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.
All libs believe that wealth comes from the government raising taxes and performing magic incantations in the White House basement. They have absolutely no concept of the idea of incentive. To their way of thinking, if the government is short x amount of money, then you tax the bejeesus out of the people to get the money back. That is why economic growth under Republican control is a complete mystery to Dems/libs.
Exactly.
It is undisputed that lowering tax rates can be expected to increase total revenue.
You just can't help but love Ronnie! He was the BEST!!! God help us, we need another one just like him in CA right NOW! We'd be happy to share Ronnie II with all of you after 8 short years as a replacement for these pretenders we have keepin the seat warm and runnin for it right now!!!
I fully agree!!!
Take care Waspman. Relativism is a liberal, slippery slide. Candidate A is much better relative to candidate B
One budget deficit is an oops, even for a conservative. Two consecutive are the hallmark of excursions off the reservation.
It's ok to get real, once in a while, don'tcha think there FRiend???
Never forget! It's GovernMental types, both elected and hired, prime directive to "look good" no matter what happens!!! Nothing else matters to ANY of these people!!!
Words to live by, Wasp. A president everyone could love.
Hey, Sierra, I like the way you talk!!
Well, my Mommy taught me not to talk-back to my elders, but I got my worst whippin with a raspberry switch the time I told her "I hear ya but I'm not listenin!" (then I got it again worse when Dad got home!!!)
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