from Brian S. Wesbury and Robert Stein
The U.S. Treasury Department reported a gusher of tax revenue last week. Tuesday alone, the Treasury received $48.7 billion from individual taxpayers as their final tax payment for 2006, an all-time single-day record, and one-third higher than the same day last year.
Based on information available through Friday, we estimate federal receipts at about $390 billion in April. This would be the largest tax take for any month in American history, up 25% versus last April, and up 18% versus the previous record high in April 2001.
With incomes and profits growing rapidly, the U.S. budget deficit will fall to about $145 billion during the twelve months ending in April. To put this in perspective, the deficit was $455 billion as recently as three years ago (the twelve months through April 2004).
These trends increase our confidence in the lonely forecast we made back in early February that the budget deficit would drop to $115 billion for the 2007 fiscal year, and disappear in Fiscal 2009, possibly before. In contrast, the Congressional Budget Office estimates a deficit of $177 billion this year, with the White House at $244 billion. Expect major revisions to these numbers.
The economy isn’t cooperating with the democrat plans for a 2008 takeover. Since “tax cuts for the rich” have facilitated strong economic growth, generating the record gusher of tax receipts, every day pocketbook issues will favor the GOP. Add to this the fact that the Left has bet the ranch on defeat in Iraq, we should expect the democrat political rhetoric to get even more shrill –if that’s possible.
h/t FR
Filed under: business and economy, News and politics | Tagged: business and economy, News and politics | 12 Comments »
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