A Different Kind of Surge...

[5stringJeff]

A surge in tax receipts, that is.
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June 25 (Bloomberg) -- Among the markets that say President George W. Bush is doing ``a heck of a job,'' the one he can take the most satisfaction from is U.S. Treasury bills.

That's because the unexpected surge in tax receipts may pare the budget deficit by 39 percent to $150 billion this fiscal year, causing a relative scarcity of four-week, three-month and six-month bills. The result is the biggest bull market for Treasury bills since the terrorist attacks on Sept. 11 drove investors to the safety of the securities.

Individual and corporate income tax revenues are growing for a fourth straight year in spite of five rounds of Bush tax cuts totaling about $2 trillion from 2001 to 2006. With less need to borrow, the government has cut sales of bills. The supply, which peaked in March 2005 at $1.06 trillion, fell to $919.1 billion at the end of May and will drop by about $160 billion this quarter, a record.

http://www.bloomberg.com/apps/news?pid=20601109&sid=a_m236TcaC_k&refer=news

[5stringJeff]

Yay for more tax receipts!!! w00t!!1

[JohnDoe]

Yay for more tax receipts!!! w00t!!1

I have never understood why people think this is so great?

More tax receipts only means more tax dollars have been taken from us and given to the government to spend?

More Tax receipts means more taxes, and more taxes means bigger government, not smaller?

What am I missing here?

[glockmail]

I have never understood why people think this is so great?

More tax receipts only means more tax dollars have been taken from us and given to the government to spend?

More Tax receipts means more taxes, and more taxes means bigger government, not smaller?

What am I missing here?

The point that you are missing is that tax cuts = more revenue to the goverment, the exact opposite effect that the Democrats claim will happen when they argue against tax cuts.

[Hagbard Celine]

The point that you are missing is that tax cuts = more revenue to the goverment, the exact opposite effect that the Democrats claim will happen when they argue against tax cuts.

How does cutting taxes equal more revenue for the government? Taxes are how the government gets revenue. :wtf:

[JohnDoe]

The point that you are missing is that tax cuts = more revenue to the goverment, the exact opposite effect that the Democrats claim will happen when they argue against tax cuts.

well, I agree that with certain tax cuts, tax revenues can increase greatly.

for example when the highest groups rates are dropped from around 70% to about 30%, this can spur investment, bringing in more tax revenues from corporations!

Same with the dividend and capital gains tax at 15% when it was close to 40% on those with the most capital gains....this spurred more sales on wall street, and has increased tax revenues in the immediate, though may catch up with us someday....?

So, perhaps I am not on the precise page with democrats on this....?
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But setting this all aside glock, increased tax revenues STILL means increased tax revenues, which means increased taxes on all of us...

The only thing different, is that the taxes have shifted and are hitting people in different ways.

And even if the extra money comes from corporations paying more, ultimately it is us, the individual purchaser of the corporation's product or service, that is the person paying those taxes?

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Also, more tax revenues from us, ultimately grows the government in size, and takes money out of the hands of the citizen, one way or another, doesn't it?

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I am a Democrat, but probably not on this subject.

I am more conservative on fiscal issues, I think...

[glockmail]

How does cutting taxes equal more revenue for the government? Taxes are how the government gets revenue. :wtf:


Cutting taxes spurs investment; the economy grows, jobs are created, more weath and income is created and more taxes get collected. Every time taxes are cut this has occurred.

Its very similar to a store reducing prices, selling more and making higher profits. They make more in the volume market than in a high-priced market.

[glockmail]

well, I agree that with certain tax cuts, tax revenues can increase greatly.

for example when the highest groups rates are dropped from around 70% to about 30%, this can spur investment, bringing in more tax revenues from corporations!

Same with the dividend and capital gains tax at 15% when it was close to 40% on those with the most capital gains....this spurred more sales on wall street, and has increased tax revenues in the immediate, though may catch up with us someday....?

So, perhaps I am not on the precise page with democrats on this....?
-----------------------------------------------------------------

But setting this all aside glock, increased tax revenues STILL means increased tax revenues, which means increased taxes on all of us...

The only thing different, is that the taxes have shifted and are hitting people in different ways.

And even if the extra money comes from corporations paying more, ultimately it is us, the individual purchaser of the corporation's product or service, that is the person paying those taxes?

-----------------------------------------------

Also, more tax revenues from us, ultimately grows the government in size, and takes money out of the hands of the citizen, one way or another, doesn't it?

---------------------------------------------

I am a Democrat, but probably not on this subject.

I am more conservative on fiscal issues, I think...

The whole idea is to have more people working so the tax burden gets sahred more evenly.

But the goal for conservatives is to pay down the deficit, invest in security, and cut spending of non-essential programs. When you start getting a surplus you cut taxes further, eventually this will decrease revenues. It's called the Laffer Curve and you can google it for more information.

[JohnDoe]

The whole idea is to have more people working so the tax burden gets sahred more evenly.

But the goal for conservatives is to pay down the deficit, invest in security, and cut spending of non-essential programs. When you start getting a surplus you cut taxes further, eventually this will decrease revenues. It's called the Laffer Curve and you can google it for more information.
Thank you, will do!