As much as it may be contrary to common knowledge that appears to be the case.
The first line of the Investor’s Business Daily story says, “Aided by surging tax receipts, President Bush may make good on his pledge to cut the deficit in half in 2006 – three years early.”
Instapundit jokes that the New York Times headline would be (if they actually reported on this): Bush deficit reduction plan falls off-schedule
With the recent Treasury Department figures we see other things that go against the grain of accepted thinking.
Tax cuts favor the rich – Maybe not. Since the Bush tax cuts, those making over $200,000 pay 46.6% of total income taxes. That is up 6.1%. The “rich” are paying more in taxes, both in actual dollars and as a percentage.
Capital gains tax cuts hurt the federal budget – Not according to the figures. Nonwithheld income tax receipts are up about 20% over last year. Those receipts include bonuses and captial gains.
Bush’s corporate tax cuts are bankrupting us – The Treasury says corporate income taxes are up about 30% from last year. We are getting more money, not less, due to the tax cuts.
It appears that John F. Kennedy and Ronald Reagan were right – tax cuts work. It appears they work every time they are tried, despite the media mantra.
I have no problem with a rich person getting a tax cut. Many, I would say most, worked hard to get to where they are. They should not be punished, in the form of high taxes, for success. That sends the wrong message.
Not only does it send the wrong message, according to the numbers, tax cuts both help the private economy grow and help the federal government raise more funds. This is a win-win for everyone, especially the individuals who get some more of their own money back.