"An unexpectedly steep rise in tax revenues from corporations and the
wealthy is driving down the projected budget deficit this year, even
though spending has climbed sharply because of the war in Iraq and the cost of
On Tuesday, White House officials are expected to announce
that the tax receipts will be about $250 billion above last year's levels and
that the deficit will be about $100 billion less than what they projected six
months ago. The rising tide in tax payments has been building for months, but
the increased scale is surprising even seasoned budget analysts and making it
easier for both the administration and Congress to finesse the big run-up in
spending over the past year.
Tax revenues are climbing twice as fast as the
administration predicted in February, so fast that the budget deficit could
actually decline this year.
The main reason is a big spike in corporate tax
receipts, which have nearly tripled since 2003, as well as what appears to be a
big increase in individual taxes on stock market profits and executive bonuses.
On Friday, the Congressional Budget Office reported that corporate tax
receipts for the nine months ending in June hit $250 billion -- nearly 26
percent higher than the same time last year -- and that overall revenues were
$206 billion higher than at this point in 2005.
Congressional analysts say
the surprise windfall could shrink the deficit this year to $300 billion, from
$318 billion in 2005 and an all-time high of $412 billion in 2004. "
Wait! But I thought that Bush cut taxes so how can the treasury be receiving more revenue??! It wouldn't have anything to do with the Laffer curve, would it? Well, the Slimes goes on to deny the real cause in revenue surges for the rest of the article.
Liberalism really is a mental disorder.