In previous threads, I have seen the question asked several times:
Where are the benefits from the tax cuts? Supply-side economics isn't working. etc., etc.
Here is one answer:
LINK
Some highlights from the report:
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Although the deficit will widen as the year goes on, recent trends suggest that the deficit in 2004 will be less than the $477 billion that CBO projected in March.
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Less than projected, huh?
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In contrast, revenues from withhheld income and payroll taxes were higher by about $2 billion, or 2 percent, and net receipts from corporate income taxes were about $5 billion, or 29 percent, higher than they were last April.
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Most of the increase in revenues so far this year is attributable to receipts from corporate income taxes, which have risen by $28 billion, or about 45 percent, as a result of strong growth in corporate profits.
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Hmm, strong growth in corporate profit equals more tax revenue. I thought we had to raise the rates to get more tax revenues from corporations?
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So far this fiscal year, receipts from individual income taxes are about $21 billion, or 4 percent, below the figure for the corresponding period last year. Most of that decline occurred because refunds of income taxes rose by $18 billion,
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Exactly how it is supposed to work. The people pay less in taxes, spend more money, stimulate the economy, businesses make more money and tax revenues go up
without taking more money from you and me.
The one thing that surprises me most about this article (yes, I was suprised) is that this has happened along with the spending binge our gov't has been on. Imagine how much better these numbers (not that they are bad) would be if gov't spending was kept in check (i.e. increase rates you can count on one hand)?
This information is several months old. Have you heard about it before this? I hadn't.