-Caveat Lector- WEDNESDAY AUGUST 01 2001 Bush will fund tax cuts with borrowed money FROM DAMIAN WHITWORTH IN WASHINGTON http://www.thetimes.co.uk/article/0,,3-2001262870,00.html ECONOMIC slowdown in the United States has forced the Bush Administration to borrow billions of dollars to provide its much-vaunted tax rebates. After saying for months that a huge projected budget surplus was “the people’s money” and would be returned in tax cuts and rebates, President Bush has found that the Treasury cannot fund them. Instead of paying off about $57 billion (£40 billion) of the national debt, as it had intended, the Government will borrow $51 billion this quarter. About $38 billion of this will fund tax rebate cheques that have already been sent out. As part of a $1.35trillion, ten-year tax cut package, couples are receiving up to $600 and individuals $300. The cuts were intended to help to stimulate the economy. Analysts said that the move to borrow was possibly the biggest U-turn on record in the Treasury’s quarterly budget funding projection and would be the largest single quarter of borrowing by the Government since the beginning of 1996. Treasury officials emphasised that the problem was more one of cash-flow than a sign of long-term trouble. The rebate was a one-off and its effect was being felt because of an accounting move in which corporations were given longer to pay taxes. “The change in borrowing reflects a number of factors, most significantly the shift in the September 15 corporate tax due date to October 1 and the need to finance in this quarter tax rebates,” the Treasury said in a statement. A debate has begun, however, on the long-term problems that will follow from lower tax receipts from individuals and corporations during a slump. The current projection is of a surplus in this fiscal year of $160 billion, down from the earlier prediction of $281 billion. This would still be the second largest surplus on record, but the fall indicates the extent to which projections can be unreliable. The White House said that the tax cuts were realistic because officials projected a massive budget surplus over the entirety of the next decade. Copyright 2001 Times Newspapers Ltd. This service is provided on Times Newspapers' standard terms and conditions. To inquire about a licence to reproduce material from The Times, visit the Syndication website. Steve Wingate, Webmaster ANOMALOUS IMAGES AND UFO FILES http://www.anomalous-images.com <A HREF="http://www.ctrl.org/";>www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance—not soap-boxing—please! These are sordid matters and 'conspiracy theory'—with its many half-truths, mis- directions and outright frauds—is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRLgives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://peach.ease.lsoft.com/archives/ctrl.html <A HREF="http://peach.ease.lsoft.com/archives/ctrl.html";>Archives of [EMAIL PROTECTED]</A> http:[EMAIL PROTECTED]/ <A HREF="http:[EMAIL PROTECTED]/";>ctrl</A> ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
