I don’t know who Edmund Andrews is, other than that he works at The New York Times and wrote an article titled “Surprising Jump in Tax Revenues Is Curbing Deficit.”
An unexpectedly steep rise in tax revenues from corporations and the wealthy is driving down the projected budget deficit this year, even though spending has climbed sharply because of the war in Iraq and the cost of hurricane relief.
On Tuesday, White House officials are expected to announce that the tax receipts will be about $250 billion above last year’s levels and that the deficit will be about $100 billion less than what they projected six months ago. The rising tide in tax payments has been building for months, but the increased scale is surprising even seasoned budget analysts and making it easier for both the administration and Congress to finesse the big run-up in spending over the past year.
It’s “unexpected” that more tax revenues are coming in from corporations and the wealthy, Andrews writes. I don’t know why this would come as such a surprise to him. Every time tax rates have been lowered, the government has pulled in more money. I have to guess that Andrews is a Democrat, because as a party Democrats have always been astonished when tax rate cuts have increased government revenues. They have never learned this lesson from history.
Next time you hear a liberal say that President Bush’s tax rate cuts were just for the wealthy, you will know that you are in the presence of someone who puts more store in his or her political theories than in historical reality.