U.S. budget deficit shrinks Of course the Usual Suspects are all claiming that the tax cuts don't have anything to do with it.
Thanks to a rush of tax revenue, President Bush disclosed Wednesday that the federal deficit shrank to $247.7 billion for the fiscal year that ended Sept. 30, small in comparison with the administration's original projection of $423 billionEven though it is good, they have to point out that it is also bad.
Yes, the deficit has been high. We are fighting a war, which is expensive, and in case no one noticed, there was a little event called "9/11" that had a negative impact on the economy. Not to mention the other little events, like Hurricane Katrina, that have also hit the economy pretty hard. But those considerations don't come into play for the Left.
Unfunded entitlements are definitely a problem. But the answer is not to raise taxes, it is to cut spending. I doubt that will happen anytime soon.
For a review of all the naysayers from the past few years, take a look at Sound of Silence: Pro-Tax Media Caught Flat-footed by Shrinking Deficit [Hat tip Toys in the Attic for the MRC article] It was unanimous at big media - they saw no alternative to raising taxes. (Cutting spending? Not from the left.)