July 13, 2006


Deficit figure jump-starts tax-cut debate (Stephen Dinan, July 13, 2006, THE WASHINGTON TIMES)

This week's lower deficit figure has been a shot in the arm for tax cutters in Congress and has reignited the debate over supply-side economics and whether President Bush's 2001 and 2003 tax cuts helped or hurt the federal budget.

"Supply-side economics are alive and well," said Rep. Jeb Hensarling, Texas Republican and the budget point man for House conservatives, who added that tax cuts are the only explanation for the declining deficit. "Spending's not down; spending has increased every single budget. What happened is we're awash in tax revenue because supply-side economics is alive and well." [...]

The improvement was credited almost entirely to an 11 percent jump in federal revenues, far more than predicted just six months ago, which left tax cutters claiming vindication and calling for Congress to extend the 2001 and 2003 cuts. The OMB even included an entire section in its report to Congress crediting the tax cuts with solid economic gains and predicting that making the cuts permanent would further increase the national income by seven-tenths of a percent. [...]

"Democrats on Capitol Hill only know how to do two things, and that's shrug their shoulders with a vacant look when challenged to present their own ideas and then spew negativity and blame-mongering when Republicans offer our ideas," said Kevin Madden, a spokesman for Mr. Boehner. "The fact that their doomsday predictions about the economy will never be realized just shows how the Democrats are absolutely, totally devoid of credibility."

Of course, prodding the Democrats into offering ideas is Karl Rove's dirtiest trick.

Posted by Orrin Judd at July 13, 2006 7:15 AM
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