{"id":1736,"date":"2006-07-12T08:18:59","date_gmt":"2006-07-12T12:18:59","guid":{"rendered":"https:\/\/www.orthodoxytoday.org\/blog\/?p=1736"},"modified":"2006-07-12T08:18:59","modified_gmt":"2006-07-12T12:18:59","slug":"soaking-the-rich-guess-who-is-paying-more-in-taxes-now","status":"publish","type":"post","link":"https:\/\/www.orthodoxytoday.org\/blog\/2006\/07\/soaking-the-rich-guess-who-is-paying-more-in-taxes-now\/","title":{"rendered":"Soaking the Rich: Guess who is paying more in taxes now?"},"content":{"rendered":"<p><a href=\"http:\/\/www.opinionjournal.com\/editorial\/feature.html?id=110008640\">Wall Street Opinion Journal<\/a> July 12, 2006<\/p>\n<p>Yesterday&#8217;s political flurry over the falling budget deficit shows that even Washington can&#8217;t avoid the obvious forever: to wit, the gusher of revenues flowing into the Treasury in the wake of the 2003 tax cuts. The trend has been obvious for more than a year (see our May 23, 2005, editorial, &#8220;Revenues Rising&#8221;), but now it&#8217;s so large that Republicans are trying to take credit while Democrats explain it away.<\/p>\n<p><!--more--><\/p>\n<p>[&#8230;]<\/p>\n<p>The real news, and where the policy credit belongs, is with the 2003 tax cuts. They&#8217;ve succeeded even beyond Art Laffer&#8217;s dreams, if that&#8217;s possible. In the nine quarters preceding that cut on dividend and capital gains rates and in marginal income-tax rates, economic growth averaged an annual 1.1%. In the 12 quarters&#8211;three full years&#8211;since the tax cut passed, growth has averaged a remarkable 4%. Monetary policy has also fueled this expansion, but the tax cuts were perfectly targeted to improve the incentives to take risks among businesses shell-shocked by the dot-com collapse, 9\/11 and Sarbanes-Oxley.<\/p>\n<p>This growth in turn has produced a record flood of tax revenues, just as the most ebullient supply-siders predicted. In the first nine months of fiscal 2006, tax revenues have climbed by $206 billion, or nearly 13%. As the Congressional Budget Office recently noted, &#8220;That increase represents the second-highest rate of growth for that nine-month period in the past 25 years&#8221;&#8211;exceeded only by the year before. For all of fiscal 2005, revenues rose by $274 billion, or 15%. We should add that CBO itself failed to anticipate this revenue boom, as the nearby table shows. Maybe its economists should rethink their models. <\/p>\n<p>. . . <a href=\"http:\/\/www.opinionjournal.com\/editorial\/feature.html?id=110008640\">more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wall Street Opinion Journal July 12, 2006 Yesterday&#8217;s political flurry over the falling budget deficit shows that even Washington can&#8217;t avoid the obvious forever: to wit, the gusher of revenues flowing into the Treasury in the wake of the 2003 tax cuts. The trend has been obvious for more than a year (see our May &#8230; <a title=\"Soaking the Rich: Guess who is paying more in taxes now?\" class=\"read-more\" href=\"https:\/\/www.orthodoxytoday.org\/blog\/2006\/07\/soaking-the-rich-guess-who-is-paying-more-in-taxes-now\/\" aria-label=\"Read more about Soaking the Rich: Guess who is paying more in taxes now?\">Read more<\/a><\/p>\n","protected":false},"author":1319,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"generate_page_header":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-1736","post","type-post","status-publish","format-standard","hentry","category-politics"],"_links":{"self":[{"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/posts\/1736","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/users\/1319"}],"replies":[{"embeddable":true,"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/comments?post=1736"}],"version-history":[{"count":0,"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/posts\/1736\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/media?parent=1736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/categories?post=1736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.orthodoxytoday.org\/blog\/wp-json\/wp\/v2\/tags?post=1736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}