With the stock market at an all time high, 46 months of straight job growth and a low 4.5 percent unemployment rate, our nation's economy is surging, but no one seems to be talking about it. The fiscal Armageddon critics predicted when Republicans enacted their economic plan, complete with tax cuts, has been averted.
Just last week, the White House's Office of Management and Budget (OMB) announced that this year's federal budget deficit will be nearly $40 billion lower than originally expected, from $244 billion to $205 billion.
I would suggest these positive economic numbers are a result of smart fiscal policies put in place between 2001 and 2003. According to the Associated Press, the drop in the deficit can be credited to "impressive revenue growth from the healthy economy."
Specifically, income tax revenue has climbed 11 percent so far this fiscal year, to $765.6 billion, while corporate tax receipts have gained an impressive 15 percent, to $210.9 billion. This monetary growth is extremely visible in today's economy, including the stock market. Just this week the Dow Jones continued its upward march, reaching the 14,000 mark.
Sound economic policies over the past 6 ½ years, including $2 trillion in tax reductions, can be credited for fueling the massive economic growth that has brought about the recent revenue boost.
I am a strong advocate for ensuring Congress does not become complacent in good economic times. Continued vigilance on behalf of taxpayers is required if we are going to achieve a balanced federal budget by 2012. My number one priority in achieving continued financial success is to require that our government live within its means, just as the working families do daily in my congressional district.
Washington does not have a revenue problem, it has a spending problem. I will continue to hold the line on spending and reject attempts to raise taxes on working families and small businesses in favor of advocating smart spending policies.