Budgets.
Good news on the Federal Deficit hidden by the Media in the back pages or not even reported.
Tax revenues are pouring into the Federal Treasury but the word just does not get out to the public. The tax cuts have worked and they have proven that the Laffer Curve does work in today’s economy. In the 9 quarters preceding the cut on dividend and capital gains rates and in marginal income-tax rates, economic growth averaged an annual 1.1%. In the 12 quarters, 3 years, since the tax cut passed, growth has averaged 4.00%. In the first 9 months of fiscal 2006, tax revenues have climbed by $206 billion, or close to 13%. This increase is the second-highest rate of growth for that 9 month period in the past 25 years. For all of 2005, revenues rose by $274 billion, or 15%. The CBO was again incorrect in their computer models and projections. The budget deficit of a little under $300 billion will come to about 2.3% of GDP which is smaller than in 17 of the previous 25 years. And let us not forget about the surpluses that are now coming into the individual states. The tax-cuts are indeed “soaking the rich”, since individual tax payments are up 14.1% this year and “nonwithheld” individual tax payments which also reflect capital gains are up 20% this year. Other statistics are also relevant to mention: Some 5 million new jobs have been created since the tax-cuts, more than Europe and Japan combined; industrial production has increased by more than $300 billion, between the 2nd quarter of 2003 and the end of 2005; 3.9 million businesses have been created; in the S&P 500 Companies, there have been more than 900 dividend increases and over 40 companies have begun to pay dividends; household assets are up more than 15 trillion since the tax-cuts- verses an increase of just 3 trillion in household liabilities. All that we read are comments from political hacks like Harry Reid and the other negative Democrats that have no knowledge of economics and do not care as long as the U.S. press writes up their worthless opinions. The newspapers in this country need to hire their own economists and stop parroting information from The Associated Press, New York Times, L.A. Times and the Washington Post and give the public the facts and not just slanted opinions.
Gary E. Marsella