I don't understand

[Shotgun]

Revenues are up, even though the tax rates went down. How did this happen?

Federal Deficit Likely to Narrow by $100 Billion
Tax Receipts Pare Borrowing

By Jonathan Weisman
Washington Post Staff Writer
Tuesday, May 4, 2004; Page E01

Smaller-than-expected tax refunds and rising individual tax receipts will pare back federal borrowing significantly for the first half of this year and could reduce the $521 billion deficit projected for the fiscal year by as much as $100 billion, Treasury and congressional budget officials said yesterday.




The Treasury Department's borrowing estimates may prove to be more good news for President Bush on the economic front, as opponents attempt to make his fiscal stewardship a campaign issue. The $184 billion the government is now expected to borrow through June is a 27 percent improvement from Treasury's February projection of $252 billion, the department said.

G. William Hoagland, a senior economic aide to Senate Majority Leader Bill Frist (R-Tenn.), said he dashed off a memo to GOP leadership predicting the 2004 deficit could be trimmed to $420 billion, a record in dollar terms but considerably lower than the White House's $521 billion projection.

"This is better than what everybody expected," Hoagland said.

 

[barman]

The only significant tax breaks went to people in very upper income classes.

Note the "smaller-than-expected tax returns".

For most Americans the overall level of tax was the same or higher.

This does perhaps suggest that overall incomes may be tweaking up a bit, though, explaining the increased revenue, and if so, there's nothing wrong with that.

 

[wilheim]

State and local taxes more than eat up any federal tax breaks the average workingman has seen. Not to mention price hikes for essentials like gasoline and milk etc.


wil.

 

[Phaedrus]

I shook my head and laughed when I read that piece yesterday ... Bush puts Reagan to shame in the Teflon™ Issue-Coating department:

1) Bush says the average tax refund will be "$ 300.00 or more larger" for Americans this year.

2) Turns out he was wrong, really wrong.

3) The media -- the Washington Post for God's sake -- hails this as "good news for Bush."

It's like getting pulled over going 140mph, the cop taking a whiff of your breath and saying "Hey, how about that! At least you're sober," walking back to his fvcking Vickie and driving off.


Phaedrus