Posted on 10/16/2006 4:43:05 PM PDT by wagglebee
WASHINGTON (Reuters) - A slowing economy will cut U.S. tax revenue growth from its surprisingly robust pace of the past year, but the federal budget deficit could still shrink a bit further in fiscal 2007, some economists say.
Much depends on how quickly and deeply the economy brakes in coming months, and how this affects corporate earnings -- a big driver behind the 22.3 percent reduction in the deficit to $247.7 billion in fiscal 2006, a figure announced by the Bush administration last week.
"As long as we don't find new things to spend money on and we have moderately sub-trend (economic) growth in the mid-2 percent range, it looks as if some improvement (in the deficit) is likely," said Lou Crandall, chief economist at Wrightson ICAP in Jersey City, New Jersey.
(Excerpt) Read more at today.reuters.com ...
Reuter's: "OK, we give up telling you how bad the economy is, now we are going to start telling you it is going to get worse, and soon!!
What is it about cutting taxes to raise revenue that people don't understand? Even JFK got it (the last Democrat to do so, I believe).
Bump!
You'd think the commie-libs would LOVE tax cuts because they increase federal revenues and that means more money to spend on social engineering and pork projects for special interest groups??? Their average donors are far, far more likely to be wealthy than average GOP donors so the whole 'tax cuts for the rich' stuff is all for show anyways since they know they benefit more than we do from them.
They had to throw in the part about "the surprisingly robust pace of the past year," as if it was news to them that the economy was on fire.
I suppose we should be thankful that at least a few things in life are always dependable. A big one is that Reuters will never cease hoping for the demise of George Bush, and also every politician in the U.S. that doesn't belong to the far left wing of the Democratic Party. No one can say that Reuters is a foul weather enemy only, they hate equally well in fair weather.
Don't forget the high stockmarket will bring in a boat load of money for the captin gains taxes that will come due in Janurany.
Not if Nancy Pelosi is Speaker.
The economy is roaring along. Unemployment is so low there is a severe labor shortage. Personal incomes are up, the deficit is declining as government revenues climb higher, home building is booming, the stock market keeps setting records, and all indicators predict more of the same.
One of the most significant indicators of how the country is doing is that a higher number of people own second or summer homes than ever before.
People think nothing of spending $30 or $50 thousand for a car and most families have more than one car.
And all this because of a small temporary cut in income taxes.
Think what would happen if a tax cut of, say, 20 percent across the board were put in place. Katie, bar the door.
Oh well, the article started out with some promise and died with this line.
So, a tax rate of say 0% across the board and we could scream UTOPIA! Right? It seems the logical conclusion. Blackbird.
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