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Budget deficit nearly 100 billion less than anticipated

Engineer

Engineer

Elite Member
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Well, 250 billion in extra revenue but only 100 billion of extra deficit reduction? Uh, sounds to me like we are still spending more than anticipated. Where's the middle class in this one? Aren't making enough extra to pay more in taxes?

Apparantely the 28% extra profit by corporations has swelled the income tax for both corporations and the wealthy which benefit most from those big profit gains.

WASHINGTON (AFP) - The projected US budget deficit unexpectedly has shrunk by some 100 billion dollars, thanks to an increase in tax revenue from corporations and wealthy Americans.


The White House is on Tuesday to release figures showing the budget deficit to be about 100 billion dollars less than projected six months ago, the New York Times reported Sunday

An administration official contacted by AFP would not comment on the story Sunday.

Corporate tax receipts, as well as those from the affluent Americans, is expected to exceed last year's by some 250 billion dollars, the Times wrote.

The daily reported that tax revenues rose about twice as quickly as budget officials in President George W. Bush's administration had anticipated
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250 billion extra but only 100 billion in deficit reduction. Gotcha! Big ole government still rearing it's head.

Oh, and for those curious...the debt as of 7/6/06 was $8,409,418,269,166.84. At the end of fiscal 2005, it was $7,932,709,661,723.50. That's only

$476,708,607,443.34 so far this year (ends on September 30th).

Last year, we had a year over year deficit of $553,656,965,393.18.

We are $76,948,357,949.84 from surpassing last year with just under 2.66 months to go. I would be suprised if we didn't easily beat last years numbers.



 
Originally posted by: Engineer
Click me!

Well, 250 billion in extra revenue but only 100 billion of extra deficit reduction? Uh, sounds to me like we are still spending more than anticipated. Where's the middle class in this one? Aren't making enough extra to pay more in taxes?

Apparantely the 28% extra profit by corporations has swelled the income tax for both corporations and the wealthy which benefit most from those big profit gains.

WASHINGTON (AFP) - The projected US budget deficit unexpectedly has shrunk by some 100 billion dollars, thanks to an increase in tax revenue from corporations and wealthy Americans.

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The White House is on Tuesday to release figures showing the budget deficit to be about 100 billion dollars less than projected six months ago, the New York Times reported Sunday

An administration official contacted by AFP would not comment on the story Sunday.

Corporate tax receipts, as well as those from the affluent Americans, is expected to exceed last year's by some 250 billion dollars, the Times wrote.

The daily reported that tax revenues rose about twice as quickly as budget officials in President George W. Bush's administration had anticipated
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Time to cut taxes for the wealthy and the corporations... better yet - don't cut taxes, but create more available tax shelters that only those with multimillion-dollar revenues can utilize - that way you're only punishing the upper middle class.
 
Originally posted by: Engineer
Apparently the 28% extra profit by corporations has swelled the income tax for both corporations and the wealthy which benefit most from those big profit gains.
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That's as close as we'll ever see to "Trickle Down Economics".
 
I agree, we need to cut our spending. There needs to be a better balance sheet so that Americans can see where all that money is going. I know I don't feel like I'm getting my share out of it.
 
These are the guys that project a ridiculous amounts so when they beat it by a bit and boast? Old trick, but it's wearing thin. If they used realistic estimates, like those outside the government and WH control they would not be able brag about failure as well.
 
God, enough with the corporate tax breaks? What the hell is wrong with this place? Since when do we give most of our money to the people who need it least?

I'm still waiting to hear about that $4 billion in tax credits we give oil companies, who have PUBLICLY STATED they don't even need the money!

This corporate babying is one of the main reasons why this country will keep piling on the debt. The other reason being the GOP controlling all three branches of government.
 
Originally posted by: Aisengard
God, enough with the corporate tax breaks? What the hell is wrong with this place? Since when do we give most of our money to the people who need it least?

I'm still waiting to hear about that $4 billion in tax credits we give oil companies, who have PUBLICLY STATED they don't even need the money!

This corporate babying is one of the main reasons why this country will keep piling on the debt. The other reason being the GOP controlling all three branches of government.
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4 billion? I thought it was 15 billion in tax credits/breaks to big oil.

By the way, it looks like we're going to break last years total. Does that mean that the administration expected the deficit be at least 100 billion more than last years total?

Also, the numbers I gave above came from TOTAL debt (including IOU's to SS, etc). I wonder if the government is giving its numbers from debt owed to individuals (Savings bonds, t-bills, etc owned by private parties) only.
 
Originally posted by: Aisengard
God, enough with the corporate tax breaks? What the hell is wrong with this place? Since when do we give most of our money to the people who need it least?

I'm still waiting to hear about that $4 billion in tax credits we give oil companies, who have PUBLICLY STATED they don't even need the money!

This corporate babying is one of the main reasons why this country will keep piling on the debt. The other reason being the GOP controlling all three branches of government.
Click to expand...

We aren't giving them money. They are paying more taxes.
 
Originally posted by: Todd33
These are the guys that project a ridiculous amounts so when they beat it by a bit and boast? Old trick, but it's wearing thin. If they used realistic estimates, like those outside the government and WH control they would not be able brag about failure as well.
Click to expand...
They recently projected the largest deficit ever, $100 billion higher than last year. So now, it may come in equal to last year. Watch all the R's become giddy that it beat projections even though it may be the 3rd or 4th highest deficit ever. This is what you call GOP fiscal conservatism.
 
Originally posted by: dullard
Originally posted by: Todd33
These are the guys that project a ridiculous amounts so when they beat it by a bit and boast? Old trick, but it's wearing thin. If they used realistic estimates, like those outside the government and WH control they would not be able brag about failure as well.
Click to expand...
They recently projected the largest deficit ever, $100 billion higher than last year. So now, it may come in equal to last year. Watch all the R's become giddy that it beat projections even though it may be the 3rd or 4th highest deficit ever. This is what you call GOP fiscal conservatism.
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Just goes to show how much money is really being spent and how much more they spend and spend and spend.

 
Originally posted by: zendari
Originally posted by: Aisengard
God, enough with the corporate tax breaks? What the hell is wrong with this place? Since when do we give most of our money to the people who need it least?

I'm still waiting to hear about that $4 billion in tax credits we give oil companies, who have PUBLICLY STATED they don't even need the money!

This corporate babying is one of the main reasons why this country will keep piling on the debt. The other reason being the GOP controlling all three branches of government.
Click to expand...

We aren't giving them money. They are paying more taxes.
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You've never heard of corporate tax breaks? The $40,000 per millionaire? We ARE giving them more money, and it's dragging this economy. This economy is doing reasonably well in spite of, not because of, the Bush Administration.
 
Better Article:
http://www.nytimes.com/2006/07/09/washi...8699725&ei=5088&partner=rssnyt&emc=rss

I dont understand any of you! Corporations have paid more taxes than anticipated. This is a good thing and you guys are acting like this is bad news. Talk about a liberal bias. Would you rather have the rich\corporations have a cut in earnings (which doesnt automatically go to you) and pay less taxes so the deficit is higher?

Isn't this the same budget projection that the dems said was unrealistic and impossible to meet?
 
Originally posted by: Jaskalas
Increased tax revenue amidst tax cuts?! Couldn?t be those "voodoo" economics eh? 😕
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It actually has little to nothing to do with "voodoo" economics, more to do with inflation, and shifts in wealth distribution, since massive amounts of money have been redistributed to those with higher inomes and higers rates.
 
Maybe I'm missing something, but I'm not sure we can credit the rich and companies unless we also know how much tax revenue went up for everyone else...a fact the article leaves out.
 
Originally posted by: Rainsford
Maybe I'm missing something, but I'm not sure we can credit the rich and companies unless we also know how much tax revenue went up for everyone else...a fact the article leaves out.
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http://www.nytimes.com/2006/07/09/washington/09econ.html
Corporate tax payments are expected to exceed $300 billion, up from $131 billion three years ago. The other big increase is an extraordinary jump in individual taxes that were not withheld from paychecks, usually a reflection of taxes on investment income and executive bonuses.
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But,
Government spending under Mr. Bush continued to climb rapidly this year, more than twice as fast as the economy. Spending on the war in Iraq has accelerated, to about $120 billion this year.
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Also,
Despite almost five years of economic growth, individual income taxes ? the biggest component of federal tax revenues ? have yet to reach the levels of 2000. Even with surging payments for investment profits and business income, individual tax payments in 2005 were only $972 billion ? below the $1 trillion reached in 2000, even without adjusting for inflation.

Over all, individual and corporate taxes have lagged well behind the economy's growth over the past five years. Government spending, by contrast, mushroomed far faster than the economy.

And federal debt has ballooned to $8.3 trillion, up from $5.6 trillion when Mr. Bush took office. Republicans are trying to raise the authorized debt ceiling to $9.6 trillion.
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And most importantly,
Tax receipts amounted to about 17.5 percent of the nation's gross domestic product in 2005, far below the level five years ago and still slightly below the average of 18 percent since World War II. Spending, by contrast, is running at about 20 percent of gross domestic product .
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good thing the GDP is growing at a nice clip...focus should be on policies to continue GDP expansion.....
 
Originally posted by: nergee
good thing the GDP is growing at a nice clip...focus should be on policies to continue GDP expansion.....
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GDP expansion has been fueled by housing surges during the last 5 years. Inflation is all but killing interest rates and therefore, the housing market with it. Not quite as drastically as the dot.com bubble of the late 90's but there nonetheless.

Print lots of money (adding 8% more money supply to the system year over year) and it eventually catches up with you in the form of inflation and the big bad FED kicks the economy's ass trying to fight it.
 
According to that NY Times article, it basically says that it's still pretty bad and that the improvements are mostly superficial.
 
Originally posted by: Strk
According to that NY Times article, it basically says that it's still pretty bad and that the improvements are mostly superficial.
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Pretty much. Tax revenues as a % of GDP had hit 40+ year lows. Kinda hard to really go anywhere but up at this point but even that appears to be a struggle.

What we really see are that corporate profits and exec salaries are skyrocketing while the average worker sees his/her salary increases being eaten up by the rise in energy costs, food, housing, healthcare, education.
 
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