April’s revenues were the second highest ever. So much for the argument that Bush’s tax cuts have driven up the deficit:
A flood of income tax payments pushed up government receipts to the second-highest level in history in April, giving the country a sizable surplus for the month.
In its monthly accounting of the government’s books, the Treasury Department said Wednesday that revenue for the month totaled $315.1 billion as Americans filed their tax returns by the April deadline. The gusher of tax revenue pushed total receipts up by 13.4 percent from April 2005.
It marked the largest one-month receipt total since the government collected $332 billion in revenue in April 2001, reflecting a boom in capital gains from stock investors lucky enough to cash out their investments before the bursting of the stock market bubble in early 2000.
Jayson at Polipundit has the big picture numbers:
$ 119 billion = Government surplus in April 06.
11% = Decrease in monthly federal spending (April 05 v. April 06).
13% = Increase in monthly federal tax receipts (April 05 v. April 06).
22% = Year-over-year decrease in the annual federal budget deficit.
We can expect the economy to continue to grow and the revenue to continue to flow; the Republicans in congress have agreed on a deal to extend President Bush’s tax cuts:
Republican leaders in Congress yesterday agreed to a $69 billion bill on tax-cut extension, which could be approved by both chambers by the end of the week, handing President Bush one of his top tax goals.
The House is expected to vote late today on the extension package, and Senate Republican leadership aides said yesterday that they hope the Senate will follow suit tomorrow or Friday.
“I think this legislation is critical,” said Treasury Secretary John W. Snow. He said that the economy has improved in recent years and that Republican tax relief “lies at the heart of the good recovery we’re seeing.”
“Today’s agreement is a victory for working Americans and for our strong economy,” said House Majority Leader John A. Boehner, Ohio Republican.