Monday, January 17, 2005
Good News The SAEN Won't Print
I assume the figures you mention are from the Congressional Budget Office.
The reason this is not positive news is because of the minor detail you left out - that the budget deficit for that period was $114 billion. That is another $114 billion piled onto our record national debt. The fact that there was slightly less debt dumped on us than at this same time last year is hardly worth celebrating. If Bush were actually to start paying down the debt - as Clinton had done - that would be good news. But the reason he does not is because his economic policy is based on the false dichotomy that you describe as:
Lower Taxes = Increased Revenue = Lower Deficits.
If that were really true we would actually see lower deficits over time. But as this chart illustrates we have seen exploding deficits under Reagan and the Bushes all thanks to what Bush Sr. once aptly described as Voodoo Economics.
The real formula that has been borne out time and time again by the undeniable facts and figures available to everyone is this:
Lower Taxes = Lower Revenues = Increased Deficits
There are times when lowering taxes is necessary and useful. But in the middle of a war when we are already faced with massive deficits is not one of them.