Contact: Mary Jane Collipriest, 202-224-5444, Washington DC 20510
July 11, 2006
Contact: Mary Jane Collipriest, 202-224-5444, Washington DC 20510 |
FOR
IMMEDIATE RELEASE July 11, 2006 |
Bennett Says Lower Deficit Result of Pro-Growth Policies and Strong Economic Growth
WASHINGTON, D.C. – Senator Bob Bennett today reacted positively to the Office of Management and Budget (OMB) report on projections indicating that the budget deficit will continue to decrease faster than expected.“Our economy continues to register remarkable growth, and today’s news demonstrates that we are right on track. Republican pro-growth economic policies continue to fuel the economy by increasing jobs and tax revenues, resulting in the announcement that the deficit is falling faster than expected,” said Bennett, the vice chairman of the Joint Economic Committee.
The OMB’s Mid-Session Review updates the Congress on budget projections through fiscal 2010. In February, OMB estimated that the 2006 budget deficit would be $423 billion, or 3.2 percent of Gross Domestic Product (GDP). However, the updated projection is that the deficit will be $296 billion, or 2.3 percent of GDP. Additionally, updated projections of tax receipts for 2006 are $115 higher than the February estimate. Bennett points to a surge in tax receipts over the last two years, due to pro-growth tax legislation enacted in 2003 and extended this year, as one of the triggers for the improved budget deficit.
“Even with the extension of lower tax rates on capital gains and dividends this year, we are bringing in more revenue and lowering the deficit. In fact, the first nine months of fiscal 2006 have shown one of the highest growth in tax receipts in 25 years, second only to last year,” added Bennett. “This is good news for our fiscal outlook, and it is good news for our economy.”
Bennett will discuss this further following the Republican Policy Lunch at 2:15 p.m. at the Ohio Clock in the Capitol.
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