Replies to post #113212 on Zeev's Turnips Talk Politics (ZTTP)

[n4807g]

It might be interesting to find out how much added revenue is directly linked to the over heating real estate market. Just as tax revenue spiked in the late 90's due to capital gains tax paid on stock market gains. The capital gains tax revenue for home sales is probably up a lot.

[jon_e_og]

I think this is very misleading. April Tax receipts are always high.
First Q GDP was about 3.6% gowth which is actually lower than the previous Q.

-when economists measue the deficit they adjust for seasonality, the fact that most economists lowered their deficit projections after these treasury #'s came out shows the extra tax revenue was unexpected, unless theres another reason for the street to reduce deficit forecasts by %10?

- on the gdp issue, its tough to argue that +3% trendline GDP growth for the forseable future is a negative, especially when almost all of Western Europe is hovering around %1, lets not get into Japan), please explain how this level of growth is bad...


Stating that the laughter curve is at work seems like a big stretch of the imagination.

well if you dont believe the tax receipts, the strong gdp, or the decreasing marginal tax rates I really dont know where to begin...

The IRS reports about a 1% increase in individual receipts between 04 and 05
So clearly it is not individuals with more money.

this statement in essence validates the idea, people are paying lower marginal rates and still managed to pay more in taxes... the business sector is most positively effected by a stronger economy, higher demand for goods + more pricing power = higher GDP and higher tax receits....

Rather I think you should look at Gov outlays. AKA Welfare. AKA deficits.

yes gov. outlays are a big problem, but remind me where these GREAT SOCIETY type fiscal disasters came from?