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Monday, May 12, 2008

Government Surplus- Why supply side works

by George Dienhart

Fox News reports the following:

WASHINGTON -- The U.S. government took in a record $404 billion in revenue in April, up 5% from a year earlier, but outlays rose 19% to $244.5 billion, cutting the monthly surplus down to $159.3 billion, the Treasury Department reported Monday. The surplus in April was close to the $160 billion estimated by the nonpartisan Congressional Budget Office. For the first six months of the fiscal year, the total deficit of $152.2 billion jumped 88% from the $80.8 billion through the first six months of last fiscal year. Reflecting the economic slowdown, total receipts are up 3% this year to $1.55 trillion. Outlays through the first six months are up 7.4% to $1.7 trillion.

See- the tax cuts are working, and most likely a major reason that we have not slipped into recession. We just need to work on the outlays, which outpaced inflation.