The biggest piece of the surge was a depreciation break in second, 2002 tax cut bill. You take a bigger deduction for capital expenses sooner, less later -- it just shifts taxes that would have been paid anyway from 2003-2004 to the current fiscal year. AT the same time, the PV of taxes paid is reduced, so there is a tax benefit to the taxpayer and a loss to the Gov.
-----Original Message----- From: PEN-L list [mailto:[EMAIL PROTECTED] On Behalf Of Jim Devine Sent: Friday, September 02, 2005 12:05 PM To: [email protected] Subject: Re: Tax Cuts to Rescue N. Orleans On 9/2/05, Max Sawicky wrote: > Not to rub salt into the wound, for FY05 it took a big jump, though > probably a temporary one. yeah, it's because profits surged. That's clearly the result of the success of supply-side economics. If Bush cut taxes for rich people and corporations once again, profit tax revenues would go up once again, right? ;-) -- Jim Devine "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante.
