If we applied liberal logic concerning tax-cuts and the deficit to say, heart surgery, the surgeon would close the patient up after the first incision for fear of blood and broken bones. Never mind that in the process of improving the patient's health, he may appear worse off in the short term. Or better yet, it would be like an addict in withdrawal who decides another fix will make it all better.
Addicts and heart patients frequently think the real cure will kill them, and Democrats have been screaming like the anesthesia has worn off in the middle of their prostate operation since before the Bush tax cuts were passed.
But once again, conservative economics are vindicated. Powerline found this story by Lawrence Kudlow in the Washington Times, which gives the lie to all the leftist belly-aching and flatulence over the tax-cuts:
In the first three months of the fiscal year that began last October, federal cash outlays rose 6.1 percent and tax collections grew 10½ percent. When more money comes in than goes out, the deficit shrinks.
At this pace, the 2005 deficit is on track to drop to $355 billion from $413 billion in fiscal 2004. As a fraction of projected gross domestic product, the new-year deficit will fall to 2.9 percent, compared with last year's 3.6 percent.
How did tax revenue grow?
With 50 percent cash-bonus expensing for buying plant and equipment, productivity-driven corporate profits ranging around 20 percent have generated a 45 percent rise in business taxes. At lower income-tax rates, employment gains of roughly 2½ million are throwing off more than 6 percent in payroll-tax receipts. Personal tax revenues are rising by nearly 9 percent.
For our remedial readers (read "Democrats"), what this means is that the tax cuts have fostered a greater base to draw tax revenue from. In other words, we are growing out of the deficit, and growing the economy as predicted.