Friday, October 06, 2006

Huge Tax Receipts - Deficit Coming Down

Democratic Myth #1 - Raising taxes will increase tax revenue and keep the deficit low

Democratic Myth #2 - Only "working" people pay taxes; corporations and the rich don't have to pay taxes because Bush eliminated them

Read this story from the Associated Press:

The federal budget estimate for the fiscal year just completed dropped to $250 billion, congressional estimators said Friday, as the economy continues to fuel impressive tax revenues.

The Congressional Budget Office's latest estimate is $10 billion below CBO predictions issued in August and well below a July White House prediction of $296 billion.

The improving deficit picture - Bush predicted a $423 billion deficit in his February budget - has been driven by better-than-expected tax receipts, especially from corporate profits, CBO said.

Report by Andrew Taylor
Associated Press

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