July 12, 2005

SOUNDS LIKE REASON ENOUGH TO CUT TAXES:

Sharp Increase in Tax Revenue Will Pare U.S. Deficit (EDMUND L. ANDREWS, 7/13/05, NY times)

Based on revenue and spending data through June, the budget deficit for the first nine months of the fiscal year was $251 billion, $76 billion lower than the $327 billion gap recorded at the corresponding point a year earlier.

The Congressional Budget Office estimated last week that the deficit for the full fiscal year, which reached $412 billion in 2004, could be "significantly less than $350 billion, perhaps below $325 billion."

The big surprise has been in tax revenue, which is running nearly 15 percent higher than in 2004. Corporate tax revenue has soared about 40 percent, after languishing for four years, and individual tax revenue is up as well.

Most of the increase in individual tax receipts appears to have come from higher stock market gains and the business income of relatively wealthy taxpayers. The biggest jump was not from taxes withheld from salaries but from quarterly payments on investment gains and business earnings, which were up 20 percent this year.


Posted by Orrin Judd at July 12, 2005 11:03 PM
Comments

But Kerry & Hillary said thius was the worst economy since Hoobert Heever!

Posted by: obc at July 12, 2005 11:29 PM

Gosh. Will Newsweek need to as that question again: "What if Bush is right?"

Posted by: erp at July 13, 2005 7:42 AM

Krugman suicide watch?

Posted by: Gideon at July 13, 2005 11:36 AM
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