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Higher Tax Revenues for U.S. in 2006

The United States apparently saw more tax revenues than were originally predicted by the White House some months ago, and analysts were curious as to whether it would have the positive effect of slightly reducing the budget deficit. And, for the most part, it seems that this is what?s happening. The increase in tax revenues is due mostly to corporations and taxes on the rich and stands at $250 billion dollars above last year?s tax revenue levels, and about $100 billion less than the Bush Administration predicted earlier this year.

While the increase shows little signs of permanency, the temporary boost has been welcomed all the same. The increase in tax revenues comes as more and more Americans reach the age of eligibility to collect Social Security, with the future of the availability of funds for that program in doubt. Government spending in Iraq has stood for 2006 at about $120 billion.

For those who are quick to denounce President Bush?s policies as ?conservative?, it must be quite confusing, because traditionally conservatives are more cautious when it comes to fiscal matters. The government, in the wake of the September 11, 2001 terrorist attacks, has grown considerably while George W. Bush has been in the Oval Office. In any case, there is the possibility that the deficit could shrink to $300 billion in 2006, it stood at $318 billion in 2005 and $412 billion in 2004.