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| *Loan,banking and credit>>>tax revenue |
What's the excuse going to be when tax revenue keeps increasing rapidly in fiscal 2008? |
No really, back in '04 it was "this is a short-term blip because the Fed was late to start raising interest rates - it will end soon and revenue will fall back into line" - at least that's what Krugman said. Oh then in '05 they said "it's just the AMT" - - except that it wasn't changes in the AMT, it was rising incomes causing more people to get caught by it. Lately the CBPP says "well of course that happens, it's a recovery" - - - - except that the Fed kept raising rates, see, so for there to be a continued expansion would mean that the expansion was fueled by the tax cuts, since monetary policy was no longer accommodating. Of course it's the economic strength - caused by the tax cuts. What's the excuse going to be next time? Or will they finally admit it - the tax cuts worked. Of course they aren't going to admit it. Ignoring facts is the biggest qualifier for being liberal. Sorry, those tax cuts only worked if you were one of the RICHEST 1% of America. 99% of Americans were Net LOSERS under Bush's tax policies. Bush Administration Struggles to Present Deficit Numbers as Evidence that Tax Cuts Help the Economy The Administration has reduced its economic growth projections but is still arguing that its tax policy is stimulating the economy. President Bush is now touting projections that the federal budget deficit for fiscal year 2007 will be only $205 billion as proof. The projections came Wednesday in the Mid-Session Review from the Office of Management and Budget. The Center on Budget and Policy Priorities rightly points out that revenues have increased, reducing the deficit from its high of $413 billion in 2004, but that always happens in an economic recovery, and usually revenues increase by more (by around 12 percent, as opposed to the 3 percent increase that we've seen since the beginning of this economic cycle in 2001). What's more, revenue increased by 16 percent in a similar period in the economic cycle during the 1990s after taxes were increased. Finally, the Administration actually reduced its growth forecast for this year from what it projected back in February. The only thing we would add is that the real deficit is bigger than $205 billion. The Mid-Session Review clearly indicates (on page 32) that the Administration will borrow $180 billion from the Social Security Trust Fund this year to keep the total deficit as low as $205. Social Security is projected to collect $180 billion more in payroll taxes than it will pay out in benefits this year. Social Security was changed back in the 1980s to collect a surplus that would make it easier to pay benefits later on, when the baby boomers retire in large numbers and more Social Security benefits must be paid out. The Social Security Trust Fund is essentially the accounting mechanism that keeps track of this, and it was never intended to be used to make budget deficits appear smaller than they really are. Not counting the Social Security surplus, this year's budget deficit is really $385 billion. www.ctj.org Ordinary Americans got virtually NOTHING from these tax cuts. It all went to the super rich who did not need it and will not spend it to stimulate the economy. We have a massive deficit that will have to paid for WITH INTEREST by the next EIGHT GENERATIONS OF AMERICANS thanks to the GOP TAX CUTS. I MISS THE CLINTON YEARS OF PEACE, PROSPERITY, AND BUDGET SURPLUSES. BUSH AND THE GOP SURE TURNED THIS COUNTRY AROUND FAST! Oh, you're so right! Tax cuts lead to increased tax revenues. So if we cut tax rates to zero, our tax revenues will be infinite. Thank you for this wonderful insight. yeah it worked alright the rich got richer and the poor got poorer so shove that in your pipe and smoke it. and no matter how much you try to get me to I will never support Bush or any other republican Liberals wont admit that but your right! Very well put by the way. I wish I understood why liberals are so eager to give their money away. |
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