08-11-2007, 11:09 AM
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#209
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Guru
Join Date: May 2002
Posts: 40,410
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That "ka-boom" continues.
http://www.captainsquartersblog.com/...ves/011183.php
Quote:
This probably won't get much attention in the media today, but new budget numbers show that George Bush's sunny deficit predictions were off the mark. It turns out that revenues are better and the deficit is smaller than predicted, and will likely balance much more quickly. That is, it would have until the Democrats decided to reverse the tax cuts that fueled the increased revenues:
Quote:
The federal deficit so far this budget year is running sharply lower, driven by record revenues pouring into government coffers.
The Treasury Department reported on Friday that the government produced a deficit of $157.3 billion for the budget year that began last Oct. 1. That's a substantial improvement from the red ink figure of $239.6 billion produced for the corresponding 10-month period last year. ...
The White House predicts that the deficit this year drop to $205 billion.
But the nonpartisan Congressional Budget Office predicts the government will produce even less red ink this year. It recently said the deficit will be "toward the lower end" of a $150 billion to $200 billion range.
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The deficit would be even smaller than that, and it should be, given the record $2.12 trillion in tax revenues collected this year. However, we also set a record for spending, at $2.27 trillion. Thanks to the new Congress, we'll be spending even more next year, even adjusted for inflation -- and if the Democrats capture the White House, it may go even higher.
Revenues continue to rise dramatically -- and ahead of expectations -- because of the tax cuts that have fueled steady growth for four years. As the economy grows, so does revenue to the federal government. It comes from better income tax revenues as more jobs get created, federal excise taxes, corporate taxes, capital gains, and any number of other sources. The tax increases on which the Democrats based their budget projections will take capital out of the markets and cost jobs -- and the revenue will fall off, creating bigger deficits to go with their increased spending.
So where does the Washington Post place this great economic news? On the front page? Perhaps just a link on their main web page? Nope. If you didn't catch the RSS feed from their national news, you won't find this article easily on the Post's site, at least not at 10:50 am CT. You won't find it on the New York Times' front page, either, nor on the Chicago Tribune's main web page, either.
Gee ... wasn't the ballooning deficit a major issue in the last couple of elections?
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