WASHINGTON (AFP) - The projected US budget deficit unexpectedly has shrunk by some 100 billion dollars, thanks to an increase in tax revenue from corporations and wealthy Americans.
This demonstrates that the state of the economy means nothing to large corporations and the wealthy, as they're both making plenty of money. So much so, in fact, that despite lowered taxation brought about in the Bush era, they're paying an enormous amount in taxes. Of course, this isn't that surprising because with big oil making record profits, we expect them to be paying record taxes too. It's nice to know that not all that revenue is lost to loopholes.
The lesson here is: taxes can be good. If we had more of them, there might not be a deficit.
2 comments:
Of course those who oppose such taxation will say that the lesson to be learned is that tax cuts are effective at stimulating the economy and bringing in more money. In fact, the tax cuts have served their primary purpose of benefitting the rich. So much so that even though tax rates have been lowered on them, they're actually paying more into the federal coffers. As for the rest of us? Well...that's a slightly different story, and one you want here Republicans talking about.
I assume you mean "won't hear", but I wouldn't mind having them come here to explain. Oh yeah, and for all those of you who haven't read my previous posts on the topic, the majority of the debt owed by the US is owned by the Chinese. I remember somebody mentioned that we need to take a harder stance on China, but it occurs to me now that the Bush administration has very little leverage with which to do that, given this state of affairs.
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