[Congressional Record (Bound Edition), Volume 153 (2007), Part 9]
[Senate]
[Pages 12610-12611]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   FISCAL YEAR 2008 BUDGET RESOLUTION

  Mr. DOMENICI. Mr. President, I believe that my service in the Senate 
has been highlighted by my interest in the budget process.
  As this year's budget negotiations continue, I would like to draw the 
attention of other Senators to a recent editorial in the Wall Street 
Journal concerning the single largest day of tax collection in U.S. 
history. The editorial is entitled ``April Revenue Shower.''
  I think this editorial raises some very interesting points that are 
particularly relevant as Congress debates the fiscal year 2008 budget 
resolution. The Wall Street Journal points out that in April alone the 
U.S. Government collected $70 billion in tax receipts above the same 
month last year and for the current fiscal year tax receipts are up 
11.3 percent or $153 billion from last year. I am not sure if most 
people are aware of the fact that on April 24, 2007, the United States 
collected a record setting $48.7 billion in tax receipts. I think these 
numbers are certainly worth our attention.
  What I find so interesting about these record-breaking tax revenues 
is the fact they were achieved without raising taxes and without a 
Federal budget in place. Rather, the American economy is the driving 
force behind these windfalls. I would pose the question that maybe; 
just maybe, we should maintain the status quo instead of entering into 
the budget resolution that is being proposed.
  I think Congress should think long and hard about these numbers 
before we consider making any change to current budget policy. Because 
of these record tax revenues the budget deficit could be slashed in 
more than half from this same time last year. The deficit could be 
reduced by $150 billion this year, which equates to approximately 1 
percent of gross domestic product. I believe our current budget policy 
is paying off and in the next 18 to 24 months the deficit could 
completely disappear, if we here in Congress do not veer off course.
  I am not surprised that we are collecting nearly 30 percent more from 
nonwithheld income. Moreover, I also do not find it surprising that 
individual income tax receipts are up by almost 17.5 percent. I believe 
that the tax relief that we instituted in 2001 and 2003

[[Page 12611]]

is paying large dividends and our economy is benefiting.
  I hope my colleagues in the Senate will consider these facts and not 
attempt to fix something that is not broken. I am simply saying that 
maybe we should not be rushed into action.
  Additionally, I ask unanimous consent that this editorial from the 
Wall Street Journal be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                          April Revenue Shower

       Here's the ``surge'' you aren't reading about: the 
     continuing flood of tax revenue into the federal Treasury. 
     Tax receipts for April were $70 billion above the same month 
     in 2006, and April 24 marked the single biggest day of tax 
     collections in U.S. history, at $48.7 billion, according to 
     the latest Treasury report.
       The April comparison is slightly askew because the IRS 
     processed more returns than usual this year. But there's no 
     denying that Americans are sending more money than ever to 
     Washington; revenues for the first seven months of fiscal 
     2007 are up 11.3%, or $153 billion. This Beltway bonanza has 
     helped to slash the projected federal budget deficit by more 
     than half from the same point last year. Across the past 
     three Aprils, federal red ink has sunk by nearly $300 
     billion. The deficit this year could tumble to $150 billion, 
     or an economically trivial 1% of GDP.
       This revenue boom certainly casts doubt on the political 
     walls about tax loopholes for the rich. So far this year, the 
     taxes paid on so-called nonwithheld income, which are dollars 
     that don't come from normal wages and salaries, have climbed 
     by nearly 30%. This is income largely derived from capital 
     gains, dividends and other investment sources--i.e., the tax 
     rates that President Bush cut in 2003. Individual income 
     taxes are also up by 17.5%--a handsome fiscal dividend from 
     rising wages and low unemployment.
       In other good news, the pace of federal spending, which was 
     pedal-to-the-metal in Mr. Bush's first term, has finally 
     decelerated. So far this year federal outlays have climbed by 
     3%, and, save for Medicare and Medicaid, federal expenditures 
     are nearly flat from 2006. Spending will climb again once the 
     Iraq supplemental passes, and revenues can't keep rising at a 
     double digit pace forever.
       Still, you'd think this dramatic fiscal turnaround would 
     cheer up Capitol Hill. Instead, Congressional Democrats seem 
     to live in a parallel universe--one that they claim is 
     starved for revenues, with a runaway deficit, and is 
     dominated by the rich who pay no taxes at all. The reality is 
     that the wealthy are financing Democratic spending ambitions, 
     and the deficit could easily vanish within a year or two if 
     Congress has the good sense to leave current tax policy in 
     place.

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