January 3, 2007
HP-214

President’s Proposal to Balance the Budget by 2012

"Over the past few years, pro-growth economic policies have generated higher revenues. Together with spending restraint, these policies allowed us to meet our goal of cutting the budget deficit in half three years ahead of schedule. We did so without taxing the working people. We kept taxes low."
– President Bush, January 3, 2007

"The President's tax cuts have laid the foundation for sustained economic growth and job creation. A strong economy means higher revenues to the Treasury. If we can keep our economy growing by continuing with economic policies that keep taxes low and drive job creation and productivity, while restraining spending, we can achieve a balanced budget by 2012."
-- Treasury Secretary Henry M. Paulson, January 3, 2007
 

Americans are keeping more of their hard-earned money because of the President's tax cuts.
(*Figures are since June of 2001 and include the Economic Growth and Tax Relief Act of 2001, the Job Creation and Worker Assistance Act of 2002, and the Jobs and Growth Tax Relief Act of 2003.)

• Americans kept $1.1 trillion by the end of 2006.
• Americans will keep $2.4 trillion over the next ten years (with permanent tax relief).
• Americans will keep $3.5 trillion total through 2016 (if permanently extended).

The President's tax relief boosted economic growth which has generated higher and higher revenues for the federal coffers.

• Tax receipts were up 11.8 percent in FY06 on top of FY05's 14.6 percent increase.
• So far this fiscal year, receipts have grown another 8.8 percent compared to the same period last year.
• Since FY03, when the President signed the most recent tax cuts into law, revenues have increased 35 percent.

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