Thursday, July 12, 2007
The Bush tax cuts are working (pass it on)
According to Investor's Business Daily, President Bush's tax cuts "kept the economy afloat and built the foundations for the current shrinkage in budget red ink":
"It wasn't that long ago that the common wisdom — especially among ignorant journalists — was that the deficit would continue rising due to the Bush tax cuts, which would reduce the amount of money coming into the government's coffers.
"They were wrong on both counts. So were Bush's Democratic foes, who predicted fiscal armageddon from 'deficits as far as the eye can see.' In 2001, Bush inherited an economy in recession, the real cause of the deficits. He wisely ignored the misplaced warnings, cut taxes and let a surging economy fill U.S. coffers with tax revenues.
"Now, surprise, surprise, the Office of Management and Budget announced in this week's midsession review that the deficit this year would be $205 billion, or 1.5% of GDP, down from $248 billion, or 1.9% of GDP, last year and well below the peak of $413 billion, or 2.6% of GDP, in 2003. That 1.5% of GDP, by the way, also is well below the average of 2.4% over the past four decades."
As revenue pours into the treasury and the budget deficit continues to shrink, what do the Democrats want to do? Why, tax and spend ... of course:
"The House Appropriations Committee's moves came as it approved a huge bill funding the departments of Labor, Health and Human Services and Education for the budget year beginning Oct. 1. The measure provides about $152 billion next year for programs whose budgets are set at lawmakers' discretion each year -- almost $11 billion above the administration's request. ...
"The panel also moved to restore Bush's proposed $550 million cut to Amtrak's subsidies."
"It wasn't that long ago that the common wisdom — especially among ignorant journalists — was that the deficit would continue rising due to the Bush tax cuts, which would reduce the amount of money coming into the government's coffers.
"They were wrong on both counts. So were Bush's Democratic foes, who predicted fiscal armageddon from 'deficits as far as the eye can see.' In 2001, Bush inherited an economy in recession, the real cause of the deficits. He wisely ignored the misplaced warnings, cut taxes and let a surging economy fill U.S. coffers with tax revenues.
"Now, surprise, surprise, the Office of Management and Budget announced in this week's midsession review that the deficit this year would be $205 billion, or 1.5% of GDP, down from $248 billion, or 1.9% of GDP, last year and well below the peak of $413 billion, or 2.6% of GDP, in 2003. That 1.5% of GDP, by the way, also is well below the average of 2.4% over the past four decades."
As revenue pours into the treasury and the budget deficit continues to shrink, what do the Democrats want to do? Why, tax and spend ... of course:
"The House Appropriations Committee's moves came as it approved a huge bill funding the departments of Labor, Health and Human Services and Education for the budget year beginning Oct. 1. The measure provides about $152 billion next year for programs whose budgets are set at lawmakers' discretion each year -- almost $11 billion above the administration's request. ...
"The panel also moved to restore Bush's proposed $550 million cut to Amtrak's subsidies."
# posted by Joltin' Django @ Thursday, July 12, 2007 
