Deficit to fall after tax cuts for the rich

Wow...no one thought it would happen. This is interesting. There will still be a huge deficit....but, this is good news for a change. However, the revenues are still below what Bush said they would be at this time as you will see in the article. But, it still looks as if the budget will decrease by $18 billion this year.

On Tuesday, White House officials are expected to announce that the tax receipts will be about $250 billion above last year's levels and that the deficit will be about $100 billion less than what they projected six months ago. The rising tide in tax payments has been building for months, but the increased scale is surprising even seasoned budget analysts and making it easier for both the administration and Congress to finesse the big run-up in spending over the past year.

Tax revenues are climbing twice as fast as the administration predicted in February, so fast that the budget deficit could actually decline this year.

The main reason is a big spike in corporate tax receipts, which have nearly tripled since 2003, as well as what appears to be a big increase in individual taxes on stock market profits and executive bonuses.

www.nytimes.com...

It would be a nice thing to look forward but the expending of the present administration on war is just to much.

Unless the administration cuts on its spending anything that taxes can bring will be just pocket change.

I have to agree with marg6043,

This reduction is like throwing a glass of water on a forest fire. 18 billion out of 8.3 trillion just doesnt cut it for me. Until we stop fuinding these two BS wars we are never going to get back on track.

I am not understanding the correlation here though. How does letting the wealthy keep more of their money help reduce the deficit. If they are not paying as much as they did before the tax cuts. It is more likely that all the cuts from social programs have made this difference. I just cannot agree with this article. Sounds like propoganda released to help validate the pathetic tax cuts.

BTW my tax cuts got me an extra 20 bucks... woooooaw better not spend that all in one gas filling.

Also, the link takes you to a page that makes you pay for the story.. And I am not paying for it... so maybe you could elablorate on how exactly this tax cut has reduced the deficit.
[edit on 22-7-2006 by TONE23]

[edit on 22-7-2006 by TONE23]

Heck, I still see it as positive news though. With all the bad news in the world, this was just something positive that I wanted to post.

Registration with the NYT is free. The title of this thread is misleading though. The article says revenues are up, but does not say anything about any link to tax cuts for the rich--which is BS to begin with.

[edit on 22-7-2006 by Astronomer70]

LOL...this has been so long ago I can't even remember the story. And oops forgive my misleading title. I seem to remember it saying something of the sort. Oh well.