What Happens If a Deficit Falls and Almost No One Reports It?

Discussion in 'Economy' started by red states rule, Feb 13, 2007.

  1. red states rule
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    red states rule Senior Member

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    U.S. Tax Revenues Up 9.7% Through Four Months, Deficit Down 57%; U.S. Media Outlets Mostly Ignore the news


    The Federal Budget Deficit: Bush Benchmark Achieved, Ignored
    Filed under: Economy, MSM Biz/Other Bias, MSM Biz/Other Ignorance, Taxes & Government — TBlumer @ 9:02 am
    ….. and the best may be yet to come.
    ___________________________________

    A huge point has been virtually if not totally ignored since the announcement on Friday that the reported federal deficit for the fiscal year that ended a week ago was $250 billion — The Bush Administration has done what it said it would do about the deficit three years ago, and has done it a full three years early, i.e., in half the time predicted.

    This continues what has been a very difficult past few years have been for those who deride supply-side economics. If Washington, with a little help from the states, lets the supply-side engine continue to chug along for next several years, the results could be so positively stunning that it would become impossible for supply-side detractors in touch with any part of the real world to hang on to the comfort of their static-analysis fantasyland.

    But first, let’s recap what has happened in the past three fiscal years:

    Tax receipts have soared by over 35% (with 5.5%, 14.5%, and 11.7% increases in fiscal 2004, 2005, and 2006, respectively) from $1.78 trillion to $2.41 trillion (2004 and 2005 results can be found at Page 2 of this PDF from the Congressional Budget Office [CBO]; 2006’s receipts were estimated by adding the $253 billion revenue increase reported near the end of this longer story).
    Despite the costs of the Iraq War, the rest of the War on Terror, Katrina relief, and not nearly enough control over other spending, the administration has accomplished its goal of cutting the reported deficit in half by the time it leaves office a full three years early (fiscal 2009, which ends a little less than three years from now, is the last budget over which the Bush Administration will have responsibility). Andrew Taylor of the Associated Press reported on the deficit yesterday (commented on here) but “somehow” missed this little nugget of good news, even though he reported on the administration’s original fiscal 2004 promise in a “not going to happen” manner just under a year ago on October 14, 2005 (last two paragraphs at link) –

    The White House has set a goal of cutting the deficit in half from the $521 billion prediction for 2004 that it issued at the beginning of that year. (the original goal was therefore set sometime before October 1, 2003, the beginning of the 2004 fiscal year — Ed.)

    The administration says it is still on track to reach that $260 billion goal by the time Bush leaves office. But administration budget projections leave out the long-term costs of occupying Iraq and Afghanistan, and have yet to be updated with cost estimates of hurricane relief.

    Even with all of those costs included, the administration has reached its goal. How ’bout that, Andrew?

    Economic growth has averaged an annualized 3.89% during the past 13 quarters since the 2003 Bush tax cuts were passed. This is a record that for all practical purposes matches the best seven years of the Clinton administration, but trails the best seven years of the Reagan-Bush 41 and Kennedy Johnson eras, when more aggressive tax cuts were enacted
    http://www.bizzyblog.com/2006/10/08...sion-accomplished-perhaps-a-lot-more-to-come/
     
  2. Delbert
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    Delbert Rookie

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    for starters, it sounds like they stole 177 billion from social security surplusses. This money should be invested for future SS liabilities.

    Tax revenues soared due to the massive amount of liquidity
    thats being injected into the economy. Big corporate profits
    and profits from an over-inflated stock market, etc., led to better
    tax revenues.

    None of this rosy scenario is due to federal spending restraints or
    any kind fiscal responsibility. This country is running full speed
    toward the edge of the cliff.
     
  3. red states rule
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    red states rule Senior Member

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    There has been no social security "trust fund" for a long time. I do believe the Dems in Congress did that

    Second, the tax cuts (that Dems said would cripple the economy) have pulled the economy out of the Clinton recession, got the economy thru 9-11, helped companies expand, hired new workers who are paying taxes, and caused huge economic growth which has increased revenue to record heights

    The deficit has shrunk over the last four years and I am not surprised to see Dems cannot understand how lower taxes increases revenue to the government
     
  4. Delbert
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    Delbert Rookie

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    yes they have been raiding SS for a while now.
    But reporting the deficit base on raiding SS is just wrong.
    It doesnt matter if they have been doing it in the past or not.


    I do agree that tax cuts can stimulate the economy and produce higher tax revenue.
    But no one is doing anything about excessive spending.
    I always hoped repubs would fix the problem, when they took control of congress. (1994?)
    It has only gotten worse. In my eyes there is very little difference (fiscally) between dems and reps.
     
  5. red states rule
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    red states rule Senior Member

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    I agree the spending is insane, but Dems will make it even worse

    Pres Bush send a budget totaling nearly $3 trillion and guess what? It is not enough. Dems are whining about "cuts" when the program is getting MORE money then last year

    SS is dying and libs answer? Raise taxes! What an original idea from the left. Throw more money at the problem.
     
  6. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    This is an easy one - the Former Elite Major Media On The Skids do not want to admit that the Bush Tax Cuts stimulated economic activity.

    January is generally a good month, however, as people make estimated tax payments.
     
  7. red states rule
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    red states rule Senior Member

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    To the liberal media and Dems, allowing people to keep more of the money they earn is a sin

    To the liberal media and Dems the government is much more efficient in spending your money then you are
     
  8. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Yes, if one's definition of Efficiency is Buying Votes.
     
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  9. red states rule
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    red states rule Senior Member

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    With the growing economy and shrinking deficit, libs will STILL try to tell the voters tax increases are needed.

    Libs never need a reason to raise taxes, if the have to they will create another crisis
     
  10. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    You mean like "The Debate Is Over" Global Warming....errrrr Climate Change Crisis?
     

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