John Spratt: “This chart right here shows something else that is left out of the budget for 2006. The President, acknowledging that he…”

“This chart right here shows something else that is left out of the budget for 2006. The President, acknowledging that he has a deficit in 2005 of $427 billion, and it is likely to be at least that large in 2006, nevertheless asked for renewal and making permanent tax cuts that total 1 trillion, 7 billion dollars. As for the effect of these tax cuts, this chart right here is pretty simple, but pretty instructive. This blue line at the top indicates the level that the administration told us projected the individual income tax revenues would follow if their tax cuts were passed. As my colleagues can see, it projected that revenues for last year would be 1 trillion, 118 billion dollars from the individual income tax. In truth, they were $804 billion. That is more than $300 billion short of what was projected. Do it on the back of an envelope. It is simplistic accounting. But we cannot avoid the conclusion: that is three-fourths of the deficit in the year 2004. This is the effect, undeniable effect that tax cuts have had on the bad bottom line that we are looking at now.”