Posted by
Gary Gross on Saturday, July 08, 2006 4:33:55 PM
I just finished reading an article from the Dow Jones Newswire that contradict everything that liberals have been saying about the budget deficit. Here's a sample of the article's content:
With federal revenue continuing to grow strongly, the U.S. Congressional Budget Office estimated Friday that the federal budget deficit for the first three-quarters of fiscal year 2006 is about $40 billion less than for the same period in the previous fiscal year.
It was just yesterday that Nancy Pelosi railed against "Republicans continue to drive up America record national debt with tax
breaks for their Big Oil cronies, while denying a pay raise for 15
million Americans." What a crock. Ms. Pelosi knows that the deficit is shrinking, although I'd prefer it shrinking faster.
What this means is that Ms. Pelosi, and, I suspect, all Democrats, knows that they have to lie about the President's economic record to not get crushed in the midterm elections this November. They're forced into these bald-faced lies because the American people would vote overwhelmingly for Republicans if Republicans were given credit for a strong economy.
I just spoke with my good friend King Banaian at SCSUScholars about the budget deficit forecasts. (King is my go-to guy on economics, especially forecasting, because he's a top economics professor.) King said that it isn't likely that the deficit would shrink into the $100 billion range before President Bush leaves office but that it's likely that it'll drop into the $200 billion range by the time President Bush leaves office.
You knew, though, that the NY Times wouldn't stay silent in the wake of this good news. Here's part of their 'wet blanket' article on the shrinking deficit:
"The fact is that revenues are way below what the administration said they would be a few years ago," said Thomas S. Kahn, staff director for Democrats on the House Budget Committee. "The long-term prognosis is still very, very bleak, and the administration doesn't have any kind of long-term plan."
What information or study does Mr. Kahn base his opinion off of? Or is this just a throw-away quote intended to lie about the President's role in a strong economy? It's amazing that the economy's doing this well considering a hurricane that wiped out an entire region's economic activity for a year and a terrorist attack that drained an estimated $2 trillion out of the economy five years ago.
Republicans are already arguing that the revenue jump proves their argument that tax cuts, especially the 2003 tax cut on stock dividends, would spur the economy and ultimately increase revenues. "The tax relief we delivered has helped unleash the entrepreneurial spirit of America and kept our economy the envy of the world," President Bush said in his weekly radio address on Saturday.
Republicans should be arguing that the revenue jump is a direct result of their tax cuts, especially cuts for corporations.
The Congressional Budget Office said Friday that corporate tax receipts
rose 26% for the nine months ending in June compared with the year-ago
period.
There's your conclusive proof that tax cuts work. By the way, feel free to 'leak' this secret program to the press. I promise it won't harm national security. It'll just wreck Democrats' chances of winning back the House and Senate this November.