[antimedia] antimedia: While there is much to celebrate....

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Posted by antimedia:
While there is much to celebrate....
http://www.antimedia.us/posts/1150306890.shtml


   ....in the news that [1]the deficit is decreasting, I personally will
   not be satisfied until we have a balanced budget amendment to the
   Constitution that forces our government to live within its means.
   There are, however, some very interesting and revealing details in
   this report.

     Aided by surging tax receipts, President Bush may make good on his
     pledge to cut the deficit in half in 2006 â three years early.
     Tax revenues are running $176 billion, or 12.9%, over last year,
     the Treasury Department said Monday. The Congressional Budget
     Office said receipts have risen faster over the first eight months
     of fiscal '06 than in any other such period over the past 25 years
     â except for last year's 15.5% jump.
     The 2006 deficit through May was $227 billion, down from $273
     billion at this time last year. Spending is up $130 billion, or
     7.9%.

   If spending hadn't increased, the deficit would be less than $100
   billion. Still not good, but certainly better than the present rate.
   Congress and this President bear the entire responsibility for that
   failure, and it can be laid directly at the doorstep of the
   Republicans. In just over ten years they have morphed from reformers
   to pigs, gourging themselves at the public trough.

     A CBO analysis last week noted that withheld individual income and
     payroll taxes are up 7.6% from a year ago, with the gains picking
     up in recent months.
     "Those gains suggest solid growth in wages and salaries in the
     national economy," CBO said.
     While gains are broad, those at higher-income levels are enjoying
     bigger salary hikes. Because they pay higher rates, federal tax
     revenues soar when they do well.
     Those making over $200,000 now pay 46.6% of total income taxes,
     presidential adviser Karl Rove recently said. That's up from 40.5%
     â despite Bush's tax cuts.

   That pretty much blows the hell out of the ignorant "tax cuts for the
   rich" argument that refuses to die.
   Without checking, I'm pretty certain that "those making over $200,000"
   are in the top 1% of wage earners. And they are paying almost 50% of
   the taxes. Looks like "tax cuts for the rich" aren't.
   But there are storm clouds on the horizon.

     While economic growth is producing impressive tax revenue gains,
     budget experts say they won't be enough to wipe out deficits,
     especially as baby boomers retire. Englund thinks the deficit could
     hit $150 billion if the expansion lasts two or three more years.
     "When we go into a downturn, the numbers reverse," he said.
     Long-term growth in Social Security, Medicare and Medicaid
     "threaten to force either European-style tax increases,
     unprecedented spending cuts or unprecedented debt," said Heritage
     Foundation budget expert Brian Riedl. "There's no growing out of
     the long-term budget problems."
     Heritage sees an $800 billion deficit in 2016, assuming tax cuts
     are extended and spending stays on its present course. If the
     economy and tax receipts continue to outperform, the deficit would
     still be at least $600 billion, Riedl said.

   We cannot continue to go further and further into debt every year.
   Sooner or later the collectors will show up at the door.
   It's time for radical change in the way our government does business,
   but only an amendment that forces Congress to stop bingeing will solve
   the problem. (Hat tip to [2]memeorandum.)

References

   1. http://www.investors.com/editorial/IBDArticles.asp?artsec=5&issue=20060612&view=1
   2. http://www.memeorandum.com/060613/p71#a060613p71