Friday, October 27, 2006
Taking aim at deficit harpies
Never let it be said that the Nigh Seen Creeder is reluctant to admit when he's wrong. Earlier this week I reported that the United States' current deficit is 2.3 percent of the overall economy. In fact, the deficit is 1.9 percent of GDP. I was not the only one who used unrevised numbers to prove a larger overall point (i.e. the deficit is not as bad as certain politicians would have us believe); indeed, the Wall Street Journal has also admitted that it used early numbers in its reporting and editorializing. To wit:
"It turns out that the budget deficit news for fiscal 2006 is even better than we previewed in these columns. Thanks to a burst of September revenue, Treasury reported ... that the deficit fell to $247.7 billion, or 1.9 percent of GDP, below our report of $260 billion."
Because of the Bush tax-cuts, the economy growing at a solid clip, revenues to the Treasury are growing at an even faster rate than the overall economy, and the deficit is falling. I've always been led to believe that the purpose of the tax code is to collect revenue while maintaining solid economic growth. That's precisely what's happening now.
Democrats want to tinker with the current marginal tax rate structure. They've given no solid economic reason to do so. All they've managed to do so far, especially when confronted with the fact that tax receipts from the wealthiest 5 percent of taxpayers have been growing at a faster rate than the remaining 95 percent, is pull canards and catch phrases from their bag of class warfare tricks.
Next time you're in speaking distance of a Democrat who wants to "roll back" Bush's tax-cuts, calmly relate the fact that the economy is solid, tax revenues are growing, and the deficit is falling. Then ask your Democrat friend to explain, without using the words "rich, fair," or "huge deficit," why he or she wants to change the tax code. When stammering or silence ensues, simply turn on your heal, laugh while still in earshot, and walk away.
"It turns out that the budget deficit news for fiscal 2006 is even better than we previewed in these columns. Thanks to a burst of September revenue, Treasury reported ... that the deficit fell to $247.7 billion, or 1.9 percent of GDP, below our report of $260 billion."
Because of the Bush tax-cuts, the economy growing at a solid clip, revenues to the Treasury are growing at an even faster rate than the overall economy, and the deficit is falling. I've always been led to believe that the purpose of the tax code is to collect revenue while maintaining solid economic growth. That's precisely what's happening now.
Democrats want to tinker with the current marginal tax rate structure. They've given no solid economic reason to do so. All they've managed to do so far, especially when confronted with the fact that tax receipts from the wealthiest 5 percent of taxpayers have been growing at a faster rate than the remaining 95 percent, is pull canards and catch phrases from their bag of class warfare tricks.
Next time you're in speaking distance of a Democrat who wants to "roll back" Bush's tax-cuts, calmly relate the fact that the economy is solid, tax revenues are growing, and the deficit is falling. Then ask your Democrat friend to explain, without using the words "rich, fair," or "huge deficit," why he or she wants to change the tax code. When stammering or silence ensues, simply turn on your heal, laugh while still in earshot, and walk away.
# posted by Joltin' Django @ Friday, October 27, 2006 
