Hayworth: "Tax Cuts Responsible for Reduced Deficit"

Reports show the 2006 federal deficit to be lower than projected WASHINGTON Economic numbers released on July 11, 2006 show the projected deficit for the 2006 budget year is significantly smaller than originally expected. The latest economic data puts the deficit at $296 billion for this year, $127 billion less than projected in a February estimate. Congressman J.D. Hayworth (R-Ariz.) points to a booming economy, bolstered by GOP tax cuts, as the main reason the deficit continues to shrink. "The best way to reduce the deficit is to reduce spending and grow the economy. And the best way to do that is to let hard-working Americans keep more of their own money," said Rep. Hayworth. "What these numbers show is that American businesses, both small and large, are committed to growing. The more money they get to keep, the more people they hire, and the more they pay in taxes." The Office of Management and Budget (OMB) released its mid-session review showing the deficit is projected to be 30 percent less than was expected six months ago. Thanks to Republican economic policies, revenue this year is expected to grow by $245 billion and on track to cut the deficit in half by 2008, a year ahead of the president's schedule. "Tax cuts and spending restraint are a recipe for good economic news. The numbers don't lie," continued Hayworth. "The U.S. economy has now added a staggering 5.4 million new jobs since August 2003 and unemployment is at 4.6 percent. Today more Americans are working than ever before in our nation's history. More workers mean more tax revenue. Couple that fact with lower spending and it translates into a lower deficit."