. July 11, 2006 SouthAmerica: According to âThe Deciderâ the US economy is doing very well with its deficits. The Bush administration projected in February that the 2006 deficit would reach $423 billion, a significant jump from the $319 billion level of last year. But now they estimate that the deficit will be only $ 300 billion dollars. They can do even better in the coming year â they can project a deficit of $ 1 trillion dollars and if the actual deficit is only $ 400 billion dollars they can claim victory. But If they estimate the deficit at $ 2 trillion dollars the $ 400 billion deficit will look even better. ******************** âBudget deficit estimate drops to $296 billionâ By James Rosen The Kansas City Star â July 11, 2006 WASHINGTON - A buoyant President Bush seized on newly reduced federal budget projections Tuesday as proof that his tax cuts are working, saying his previous pledge to slash the deficit in half by 2009 is being fulfilled well ahead of schedule. Democrats pooh-poohed the figures released by the White House budget office and said that the $296 billion projected deficit for the current fiscal year would still be the fourth-highest ever. "Today is a good day for the American taxpayer," Bush said at a White House briefing attended by Republican lawmakers, Treasury Secretary Henry Paulson, budget director Rob Portman and other political allies. "Tax relief is working, the economy is growing, revenues are up, the deficit is down," he said. The Bush administration projected in February that the 2006 deficit would reach $423 billion, a significant jump from the $319 billion level of last year. Budget officials attributed the lower projection of $296 billion to an unexpected surge in tax revenues to the governmentâ¦.. .
LOL, what a joke! Trickle down supply side economics is a failure and continues to be a failure. To say, gee, the budget deficit is only -$300 bil instead of -$400 bil is like saying it's safe to build houses out of straw because only three-quarters of the roof caught fire this time. Supply-side supporters point to record corporate earnings and low unemployment and say, see, tax cuts work. Wrong. Any fool can whip out a VISA card and live a prosperous life for a short time. That's exactly what our Repub gov't has done -- whipped out the national credit card to stimulate the economy. But look at the price we are going to pay in the long run -- high interest rates, inflation, recession and possibly a currency crisis. Face it people, federal taxes are too low. Taxes serve to confiscate paper currency and regulate the float. When taxes are too low, there's too much paper in circulation. Inflation and a weaker dollar are the inevitable result. The only way out of the looming economic quagmire is to reduce spending and raise taxes. Painful medicine, to be sure, but it must be done.