back FOR IMMEDIATE RELEASE  CONTACT: July 9, 2004 Kate Dwyer: 202-226-7326 Latest CBO Numbers Show: Lower Taxes Spark Higher Federal Tax Receipts  WASHINGTON –  Wisconsin’s First District Congressman Paul Ryan today drew attention to the latest Congressional Budget Office (CBO) tabulation of tax collections, which shows that Fiscal Year 2004 federal tax receipts through June continue to exceed last year’s levels.  Tax collections this fiscal year are about $48 billion (3.6%) higher than last year at this time.  June receipts were $22 billion (11%) higher than June 2003.  The increase can be attributed to surging corporate tax receipts from the stronger economy and higher payroll tax revenues due to job creation and higher wages.  “This is the untold story of pro-growth tax relief,” Ryan said.  “We’ve seen in the past, as we see today, that lowering taxes on investment and lowering tax rates overall produces job growth and economic activity that ultimately brings more money back to the U.S. Treasury.”    Corporate tax receipts increased about $43 billion (44%) in the first three quarters, to $140 billion. Payroll tax revenues are up 2.6% from last year.  This is mostly due to the increased number of workers and higher wages.  Individual income tax receipts are down slightly, about $10 billion (-1.7%) year-to-date in June compared to the same 9 months of FY03.  CBO notes: “The increase in receipts from withheld income taxes, despite the tax-rate reductions enacted last year, is consistent with the strengthening of the economy in recent months.”  back