Money matters - Bush tax cuts of 2003 showing signs of paying dividends
By Steve A. Tuesday, May 22, 2007
The federal treasury had its biggest day and biggest month in history for tax revenues in April. On April 24 nearly $49 billion (that’s with a “b”) rolled into the treasury to make it the biggest revenue day ever.
The Wall Street Journal called it “An April Shower of Revenue” and “the surge you’re not reading about” as receipts totaled $70 billion over the same month in 2006. April receipts were about $384 billion and federal spending totaled $206 billion — leaving a surplus for the month of $178 billion.
The big dollars rolling in have helped cut the projected federal deficit by more than half vs. last year. The WSJ reports that taxes from capital gains and other investments are up nearly 30 percent. That’s one of the areas President Bush cut rates for in 2003.
John Kennedy and Ronald Reagan cut tax rates during their presidential terms with similar revenue growth results.
If the federal government can hold spending to current levels plus inflation, projections are the deficit will be eliminated by 2012. That is, of course, unless Congress fails to make the tax cuts permanent.
I think the record-breaking stock market success can also, in part, be attributed to people and companies keeping more of their hard-earned money to spend, invest and build.
lll
Speaking of taxes, ABC News reports that in a break with the tradition of recent presidential campaigns, most the major presidential candidates aren’t releasing their income tax filings.
Since 1984, only one major party candidate — Bill Clinton in 1992 — refused to release tax forms.
John Edwards has indicated he’ll keep his forms private while John McCain and Hillary Rodham Clinton “aren’t saying” but have not released tax forms filed this year. Gov. Mitt Romney and Rudy Giuliani have not said “no” but have not come forward with the information.
In fact, Sen. Barack Obama is the only top line candidate to make this year’s tax forms public so far.
Full disclosure of tax forms is not required by law, but many think releasing the forms gives “protection against potential conflicts of interest.” Showing honesty and building trust are also mentioned by political observers.
lll
Keeping with a national theme this week…
There ain’t much love for folks inside the “Beltway.”
According to a Gallup Poll released last week, President Bush’s approval rating is hovering at 33 percent. But he’s flying high compared to his friends across town. When asked how Congress is doing its job, a 29 percent approval rating is all they could muster as a group.
I’ve observed, and elections seem to validate, that in general people like their representatives but don’t necessarily like the “group.”
lll
Former TV presenter Daniel Shore tried to make a comparison between a wall at the Mexican or Israeli borders to the former Berlin Wall on a recent PBS “essay.”
A major difference that Shore failed to mention: The Berlin Wall was built to keep people in. The Mexican and Israeli border walls were designed to keep illegals and terrorists out. Legal travel or immigration would be welcomed.
lll
Did you hear about that poor Hoosier who missed his sixth grade graduation?
He had jury duty.


My response:


I read with amusement Steve Austin's article in the paper today. If I wanted to know Republican National Committee talking points and propaganda I would go to their web site. He doesn't need to repeat them in the Gleaner. Bush has done nothing for our economy. He was given a three trillion dollar surplus when he came in office and he and the republican congress promptly spent it and went into debt to heights not seen in US history. Now you want to claim there is an economic miracle taking place due to his irresponsible tax cuts. Ask the average person how the economy is doing? The deficit was caused by him and until he generates more than a three trillion dollar SURPLUS and gives that to the next president he has accomplished nothing. His administration predicted a deficit twice as high as it presently is so that when it came back half of that number they could claim they had really made progress on it. What a joke. A war time economy is one that can not be sustained. I know war is good for the economy but please. This administration has been about as successful economically as they have been in the Iraq War, finding Bin Laden, moderating gas prices and helping Katrina victims. Editorials as biased as the one Mr. Austin wrote are an insult to the intelligence of the people of this community.


In addition, if Bush increases the stock market 3 times what it was when he took over in 2001 you could say the market had duplicated what Clinton did. It tripled under Cliniton and he inherited the largest deficit in history. It would have to go to 33,000 for that to be a reality for Bush. In essence it has only gone from 11,200 to 13,400, around 17%, and that is in war time. Not during peace time. Ask the average person at the gas pump or at the hospital emergency room how the economy is. Bush's approval ratings are at 28%, about the same as Carter's during the Iran hostage crisis. Even during Clinton's impeachment his never got lower than double what Bush has now. Under Reagan and both Bushes the federal deficit exploded and Clinton had to pay off all their debt. Their tax cuts only made matters worse. The fact is when Clinton raised taxes on the wealthy and practiced budgetary restraint he created the largest surplus in history and added millions to the employment rolls. Try to use unbiased facts in your so called editorials. When you factor in the additional people coming into the workforce every month due to population growth the employment rate and tax income is less than under Clinton. You can't compare apples with oranges as much as GOP'ers and wall streeters like to. It's just not reality. Don't take facts out of context and don't just take GOP propaganda as gospel. That is what has got this country in the shape it's in today. Other than that I liked your article. Ha!