The story that the national media isn’t telling this week is that the federal budget deficit is dropping, and fairly rapidly, without tax increases. In fact, it’s dropping even as Congress continues its drunken (pardon me, Ambien influenced) spending spree. At this point last fiscal year, the total deficit was 272,338,000,000 dollars. This year it’s 226,9666,000,000. But there’s even better news ahead as May was a deficit month and we still have two big revenue collection months, June and September. In every big revenue month this year the monthly surpluses have been substantial and overall more than twice as large as last year, while the deficit months have also been bigger but not by as great a margin. If the pattern continues the deficit for this fiscal year should be roughly 1/3 lower than last year.
Spending cuts would certainly be nice. Even getting spending increases under control and not adding any more Bridges to Nowhere to the bill would be a great. On the other hand, anyone who tells you a tax increase is a good idea under these conditions is a bit loopy. Any Republicans who tell you a tax increase is a good idea are false prophets, wearing “sheep’s clothing, but inwardly they are ravening wolves.”