Hmmm. Ya think they'll repeal those recent tax increases in Virginia? Nahhh, didn't think so.

Too Bad they think its vodoo economics in Ohio.

Of course revenues have gone up in Maryland and Virginia, the Federal Government under Bush is spending money like..theres no tomorrow?...drunken sailor?... anyway a lot of money.

There is a war on, so spending so go up for defense. On the other hand, domestic spending is also way up.

The Federal deficit has shrunk this year as revenue has grown.

Yeah, but didn't we have a surplus before Bush got in?

The "surplus" meant that more was being taken in than was spent. Since servicing the debt (which is not the same as a deficit) this means that taxes were too high.

Hit the fershlugginer "post" button instead of "preview". Try again...

The "surplus" meant that more was being taken in than was spent. Since servicing the debt (which is not the same as a deficit) is built into the budget, this means that taxes were too high.

You can only grow your way out of deficits if a) the economy is growing, and b) spending is restrained to growth at a rate (preferably far) lower than economic growth.

Fiscal discipline was forced upon the states the past few years, but don't bank on it lasting.

Chris Durnell:

What we had was a projected surplus, not an actual surplus.
The projection wouldn't have survived the reality of the popped Tech Bubble and 9/11.

"Yeah, but didn't we have a surplus before Bush got in?"

The fallacy is called post hoc ergo proctor hoc. The Federal tax system is very progressive it is therefore very highly leveraged to the capital markets, that are the most volital source of high incomes.

In the '90s we had the biggest stock market bubble that anyone now alive is likely to see in his adult lifetime. As a consequense thereof the government harvested tremendous revenues. At the same time, the Clinton administration ignored the gathering storm and systematically starved the millitary for resources. Result surplus.

In the spring of 2000, the stock market bubble burst. We have not yet regained 11,000 on the Dow which we hit in March 1999 and NASDAQ 5000 is a dim memory. The recession began in the spring of 2001, well before any policy action attributable to the Bush administration could have taken effect. Then came 9/11.

There were on-budget surpluses of $1.9 billion and $86.6 billion in '99 and '00, and total surpluses of $69.2 billion, $125.6 billion, $236.4 billion and $127.4 billion from '98 to '01. No fallacy there.

Though the implication sure is...