Say Anything Blog

The left must hate producers so much when they oppose tax cuts.  A relatively small tax cut that was enacted under George W. Bush is growing tax receipts much much faster than inflation.

Federal revenue collections hit an all-time high in April, contributing to a further improvement in the budget deficit for the year.

Releasing its monthly budget report, the Treasury Department said Thursday that through the first seven months of this budget year, the deficit totals $80.8 billion, significantly below the $184.1 billion imbalance run up during the first seven months of the 2006 budget year.

So far this year, tax revenues total $1.505 trillion, an increase of 11.2 percent over the same period last year. That figure includes $383.6 billion collected in April, the largest monthly tax collection on record.

So far this year revenue is up 11.2 percent.  That’s huge!  There’s no way you’d expect any tax increase packages by the Democrats to equal this increase which is fueled by people having an incentive to earn more money. 

Not only does the government have so much more money but peoples that work hard and pay taxes have better lives because they are keeping more of their money.  Unfortunately the left is so invested in class envy that they want to drag the successful down.  That’s the only explanation for their demand to raise tax rates.  IF they wanted more money to spend they’d reduce taxes again (first by making the Bush tax cuts permanent and eliminating the AMT).  I think that the class hatred by the left is becoming a public mental health problem.

So how is the Bush record for tax growth.  Well according to the Congressional Budget Office from fiscal year 2001 to fiscal year 2006 treasury revenues increased 21%.  (Heck you could even use the dot-com bubble revenues and the revenues still grew at 19%).  Between 2001 and 2006 inflation was more like 11% so revenues are running nearly double inflation. 

The budget deficit is probably going to be at 150 Billion dollars this year.  That will be at a completely sustainable 1.1% GDP.  As long as the deficit is lower than the growth rate the debt is more manageable year after year.