Tax Revenue “Gusher” Lowers Deficit

Why do Democrats keep calling for higher taxes when the President’s economic policies are working?

From Fox News/AP:

Federal Budget Deficit Falls to Lowest in Four Years

WASHINGTON — The federal budget deficit, helped by a gusher of tax revenues, fell to $247.7 billion in 2006, the smallest amount of red ink in four years.

The deficit for the budget year that ended Sept. 30 was 22.3 percent lower than the $318.7 billion imbalance for 2005, handing President Bush an economic bragging point as Republicans go into the final four weeks of a battle for control of Congress.

Bush called the 2006 outcome a “dramatic reduction” in the deficit which allowed him to fulfill his 2004 campaign pledge of cutting the deficit in half earlier than his original 2009 target date.

“These numbers show that we have now achieved our goal of cutting the federal deficit in half and we’ve done it three years ahead of schedule,” Bush told reporters at a Rose Garden news conference. “The budget numbers are proof that pro-growth economic policies work.”

The pledge to cut the deficit in half was based on the administration’s forecast that the 2004 deficit would hit $521 billion, a figure that proved to be too pessimistic by more than $100 billion. However, the administration has continued to use the forecast number as its benchmark for deficit reduction.

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