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| Version 1 | Version 2 |
|---|---|
| Tax bonanza helps cut US deficit | Tax bonanza helps cut US deficit |
| (about 1 hour later) | |
| Bumper tax income has helped the US government cut its 2006 federal budget deficit to a four-year low of $247.7bn (£133bn), the US Treasury has said. | Bumper tax income has helped the US government cut its 2006 federal budget deficit to a four-year low of $247.7bn (£133bn), the US Treasury has said. |
| The shortfall for the budget year to 30 September 2006 was 22% lower than the $318.7bn recorded in 2005. | The shortfall for the budget year to 30 September 2006 was 22% lower than the $318.7bn recorded in 2005. |
| Spending and tax revenues hit all-time highs, but the deficit fell as spending rose 7% and tax income climbed 12%. | Spending and tax revenues hit all-time highs, but the deficit fell as spending rose 7% and tax income climbed 12%. |
| President George W Bush said: "The economy is creating jobs and reducing the deficit." | |
| 'Achieved goal' | |
| He added: "It is making our nation a more prosperous nation for all our citizens." | He added: "It is making our nation a more prosperous nation for all our citizens." |
| In February 2004 Mr Bush set a goal of cutting the deficit in half from a projected peak in of $521bn, or 4.5% of gross domestic product, although the actual deficit for 2004 was $412.7bn, or 3.6% of GDP. | |
| Speaking on Wednesday, Mr Bush said: "These numbers show that we have now achieved our goal of cutting the federal budget deficit in half, and we've done it three years ahead of schedule." | |
| The 2006 figure is far below the $423bn gap forecast in February and the revised $295.8bn estimate from July. | The 2006 figure is far below the $423bn gap forecast in February and the revised $295.8bn estimate from July. |
| 'Good tax policy' | |
| The US has recorded consistently high deficits in recent years, leading critics of the Bush administration to accuse it of fiscal indiscipline. | The US has recorded consistently high deficits in recent years, leading critics of the Bush administration to accuse it of fiscal indiscipline. |
| In return it has promised to halve 2004's record imbalance, and claims that the tax cuts introduced in recent years have helped to stimulate the economy, thus raising tax receipts. | |
| After the deficit news, Mr Bush said: "Good tax policy has a lot to do with keeping the economy strong. We'll continue to urge the Congress to make the tax cuts permanent." | |
| The tax cuts are due to expire by the end of 2010. |