Tuesday, June 13, 2006

STUNNER! Tax Cuts Work

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On a day where the news was good, it just gets better:

Aided by surging tax receipts, President Bush may make good on his pledge to cut the deficit in half in 2006 — three years early.

Tax revenues are running $176 billion, or 12.9%, over last year, the Treasury Department said Monday. The Congressional Budget Office said receipts have risen faster over the first eight months of fiscal '06 than in any other such period over the past 25 years — except for last year's 15.5% jump.

Hmmm...2006 minus 25 years would mean that the last time we've had tax revenues jump this high was when the great Ronald Reagan was in office. Sweet.

Ace notes that if spending were held in check, we may be looking at a surplus in the near future. OTB is less elated then I.

I agree that if spending was reduced (an idea that used to be a cornerstone of conservatism) we would be looking at a greatly reduced deficit and perhaps a surplus. This is still excellent news and does indeed show that tax cuts can increase (and spur) revenue.

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