I'm not sold on the tax cuts "creating" revenue yet - the cuts took 5 years to get revenues back to 2000 levels. Last year growth in revenue was the largest in many years, but a spike is not unusual coming out of a recession. There was even a spike coming out of the 91 recession about the same timeframe into the recovery of slightly lower magnitude, even though there were tax hikes at that time.
That's not to say lower taxes aren't good - but its a bad idea to lower taxes without keeping spending in line (something the GOP can't seem to do). Otherwise you'll get 33% annual growth in interest payments like we're seeing this year.
I agree - if they reduce the rate of growth in spending (preferably to below the rate of inflation), they'll lower the deficit. But with Katrina and Iraq spending, we're looking at an even larger deficit this year.
Bring back pay-go.
We came out of the 91 recession due to lower interest rates, new construction due to hurricane damage, and a technology boom. All these things offset the Bush and Clinton tax increases. However one Clinton sued microsft, and the dot-coms destroyed the markets, there wasn't anything to keep the economy moving forward. Then 9/11 happened which made a mess of everything.
The tax cuts W offered were very modest in size. And yet they've helped to revive the economy. With bigger, more massive tax cuts, revenues will be much stronger. For the economy and the tax base will be much larger
The tax cuts were passed in 2003, not 2001. I hear yah on the spending though.