An unexpectedly steep rise in tax revenues from corporations and the wealthy is driving down the projected budget deficit this year, even though spending has climbed sharply because of the war in Iraq and the cost of hurricane relief.
Graphic: Mixed Signals On Tuesday, White House officials are expected to announce that the tax receipts will be about $250 billion above last year's levels and that the deficit will be about $100 billion less than what they projected six months ago. The rising tide in tax payments has been building for months, but the increased scale is surprising even seasoned budget analysts and making it easier for both the administration and Congress to finesse the big run-up in spending over the past year.
Tax revenues are climbing twice as fast as the administration predicted in February, so fast that the budget deficit could actually decline this year.
The main reason is a big spike in corporate tax receipts, which have nearly tripled since 2003, as well as what appears to be a big rise in individual taxes on stock market profits and executive bonuses.
So, let's review:
Of course, facts don't seem to halt either the Democrat's or the MSM's continual attacks on this administration. They apparently know deep in their heart who is the real enemy of civilization.
My only regret is that I will probably not be around when history makes short shrift of these prevaricating, opportunistic, terrorist-enabling and completely clueless champions of the oppressed.