US corporate tax receipts hit another record high in the third quarter, reflecting
the strength of the US economy and the positive effects of President George
W. Bush's tax policies, the Treasury Department announced on Monday.
According to a statement by Treasury Under Secretary for Domestic Finance, Randal
K. Quarles, corporate tax receipts on Friday's quarterly payment date again
reached a record high, with gross receipts on that day the highest ever recorded
in a single day in US history, at $85.5 billion. This is 20% higher than receipts
on the same quarterly tax payment date last year.
"This revenue growth comes in receipts that were already increasing substantially
as a result of the President's economic policies," Quarles said.
"Last year's tax receipts were also a record high, having grown $275 billion,
14.6%, from the previous year. At this point in the year, overall tax receipts
are running 11.7% higher than last year," he added.
The figures are good news for the Bush administration, which has pledged to
substantially cut the federal deficit.
The Congressional Budget Office projects a deficit of $260 billion for fiscal
year 2006, about $111 billion less than it estimated in March for the President’s
budget, largely as a result of revenues from unexpectedly strong corporate profits.
Analysts believe that the government is on track to hit this target.
"Strong revenue growth, together with fiscal restraint, is critical to
deficit reduction," Quarles noted.
"As today's announcement shows, we are firmly on the path to meeting the
President's goal of cutting the deficit in half ahead of schedule," he
added.
TAX-NEWS.COM
Free Tax-News Feed