Saturday, August 11, 2007


You know those '01 and '03 Bush tax cuts that Dems insisted would "blow a hole in the budget" and "balloon the federal deficit"? They've fueled an ongoing economic boom that can't funnel tax revenues into the U.S. Treasury fast enough:

The federal deficit so far this budget year is running sharply lower, driven by record revenues pouring into government coffers.

The Treasury Department reported on Friday that the government produced a deficit of $157.3 billion for the budget year that began last Oct. 1. That's a substantial improvement from the red ink figure of $239.6 billion produced for the corresponding 10-month period last year. ...

The White House predicts that the deficit this year drop to $205 billion.

But the nonpartisan Congressional Budget Office predicts the government will produce even less red ink this year. It recently said the deficit will be "toward the lower end" of a $150 billion to $200 billion range.

Putting that in a bit better context, that's a deficit of about 7% over the federal government's income, not all that much compared to the double-digit percentages of the Reagan-Bush41-Clinton (1st term) years. All of which proves how the Lafferian argument of supply side economic policies enabling the federal budget to "glide" into balance over time were and are spot-on target. The Gipper, in other words, has been redundantly vindicated.

This must be why the story is so difficult to find in the Enemy Media today. With the Democrat majority in Congress hungrily gestating all manner of tax increases to "pay" for the vast expansion of Big Government they're plotting, their press pals don't dare let it get out that low tax rates and market-oriented economic policies make it possible for the American people to keep their standard of living steadily on the rise AND raise the government's "boat" along with it.

On the other hand, after the Dems raise taxes again once President Rodham is available to sign the bills, the economy tanks, and the deficit re-explodes, they'll just blame it all on the Bush tax cuts anyway. That's one "story" the EM is guaranteed not to bury.