The latest U.S. data show little relief from the ever growing federal deficit. The current estimate, while down from previous CBO “guesses”, still stands at a lofty and unacceptable $227 billion.
The narrowing of the deficit occurred just at the same time that federal spending increased by 8 percent. Rising collections from the richest Americans and corporations helped close the gap. In fact, May tax receipts grew by 26 percent including a 14 percent increase in individual income tax collections, a 30 percent growth in corporate tax receipts and a 22 percent rise in non-withheld tax payments. Of course the major source for non-withheld tax payments was capital gains from stock and bond sales.
This data once again refute the claims that the Bush tax cuts are responsible for the budget deficit. The real problem has been, is and will continue to be overspending by Republicans and Democrats in Washington.