Another Bogus Budget

Krugman in the Times writes "The prime cause of giant budget deficits is a plunge in the federal government's tax take, which fell from 20.9 percent of G.D.P. in fiscal 2000 to a projected 15.7 percent this year, the lowest share since 1950. About 45 percent of this plunge can be attributed to the Bush tax cuts. The rest reflects the end of the stock market bubble, the still-depressed economy, and — probably — growing tax sheltering and evasion." And he goes on to say: "It's true that increased spending also contributes to the deficit, and that there has been a substantial increase in discretionary spending — spending that, unlike such items as Social Security payments, isn't automatically determined by formulas. But the bulk of this increase was related to national security.

Sure do appreciate all the help George. And with the tax cut, I'm finally able to buy that 2nd Jaguar. (the toy model , that is).