About Those Tax Cuts…

Looks like they continue to do what the Bush administration said they would. The economy keeps growing, and with it, tax receipts.

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.

People have more to spend, and they’re spending it, growing the economy, creating jobs, and increasing tax receipts, just like they did after the Reagan tax cuts.

So what do the Democrats plan to do if they win back control of Congress?

To do that [don’t increase the deficit], [Pelosi] said, Bush-era tax cuts would have to be rolled back for those above “a certain level.” She mentioned annual incomes of $250,000 or $300,000 a year and higher, and said tax rates for those individuals might revert to those of the Clinton era. Details will have to be worked out, she emphasized.

“We believe in the marketplace,” Pelosi said of Democrats, then drew a contrast with Republicans. “They have only rewarded wealth, not work.”

But the more money you have, the more you can spend and keep the job & economic growth fueled. Yeah, let’s penalize those who are doing the most to increase tax receipts by taking their money away. Why do Democrats think it makes sense to siphon off tax money before it’s used, removing it from the marketplace, rather than collect it as part of an expanding economy?

Technorati Tags: taxes, tax cut, Nancy Pelosi, Democrat, Ronald Reagan, budget deficit

Filed under: Democrats • Economics • Government • Politics

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