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Monday, November 14, 2005

Oh no, a balanced budget by 2008

According to Steve Conover

...just in time for the presidential campaign?

Smiley19aThat's the current trend, I kid you not. Neither party's "help" appears to be needed, either: no spending cuts, no tax rate hikes, thank you very much.

The two trend lines, receipts and outlays, confirm what I thought I had seen two months ago. Federal tax receipts are growing much faster than federal spending outlays: 15.2% versus 8.5%, respectively.

The trend in tax receipts on this chart illustrates the power of a growing economy: tax receipts grow because more people are creating jobs, more people are working, and taxable incomes are rising. That's what is happening today, and that's what we should want to sustain.

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