Liberty Just in Case

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Archive for February 12th, 2007

Tax Cuts Work…You Pedantic Purveyors of Pulp Fiction

Posted by Mark on February 12, 2007

The Treasury Department’s Monthly report is in….yah…and the U.S. deficit CONTINUES to shrink..

The U.S. federal budget surplus widened by 82% in January to $38.2 billion from $21 billion a year earlier, the Treasury Department reported Monday. Receipts rose 13% year-over-year to a record $260.6 billion, while outlays increased 6% to $222.4 billion, the Treasury said. Individual income tax receipts totaled $154.5 billion in January. Corporate income tax receipts were $10.9 billion.

For the first four months of the 2007 fiscal year, the deficit was $42.2 billion, about 57.2% lower than the $98.4 billion deficit in the same period in the previous fiscal year. For all of 2007, the CBO estimates a shortfall of about $200 billion, narrower than the $248 billion deficit in fiscal 2006.

But analysts at RBS Greenwich Capital believe this forecast is too pessimistic. They look for a drop in the deficit to around $155 billion in the fiscal year. In a note to clients, RBS Greenwich said that unless the April 15 individual income tax receipts are disappointing, the Treasury will eliminate the 3-year note at the May refunding.

Imagine that!

While the demo-bats bluster and stump to raise taxes…..the current deficit continues to DECREASE- a direct result of the vilified Bush tax cuts. (An Economics 101 paradigm I explained in a previous post.)

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