The Bush Administration is rejoicing in what it says is a dramatic drop in the federal deficit, from $412 billion in 2004, to $333 billion in the current fiscal year. The reason, says the administration, is a larger than expected jump in tax revenue.
Sen. Jim DeMint, South Carolina Republican, believes the administration's numbers are "misleading," because "Congress is raiding Social Security to mask the true size of the deficit."
Still, the deficit appears to be declining for the first time since the end of the Clinton Administration, the onset of the wars in Afghanistan and Iraq, and costs associated with 9/11. Bush spokespeople say it is on track for being cut in half by the end of his second term, or possibly sooner. They credit the tax cuts for stimulating the economy, thus producing higher tax receipts.
Relying on unexpected revenue to keep deficits down is like hoping an unexpected arrival of alcohol will help a drunk toward sobriety. The availability of money encourages free-spending Republicans and Democrats to find new programs, or pad old ones, for the purpose of extending their political careers.
And when large surpluses are created through big tax increases - as is now the case in Virginia - Democrat (and not a few Republican) governors prefer to look for new ways to spend instead of cutting programs and refunding money to overtaxed citizens.
Accompanying the news of increased federal revenue was a welcome announcement of proposed legislation with the potential to curtail government spending - the real cause of deficits.
The Bush Administration is asking Congress to pass the Government Reorganization and Program Performance Improvement Act of 2005. If approved (and citizens should lobby Congress to make sure it is, if they want to keep more of their money), the legislation would create two agencies that would place the interest of taxpayers before those of the politicians.
The Sunset Commission would review the effectiveness of each federal program. Programs and agencies would automatically cease unless Congress took specific action to continue them. The Results Commission would work to uncover duplication of services in government programs, of which there are many.
The fact that such commissions are needed is an indication of the problem. Government programs are the only sign of eternal life on earth. Once they are created, they attract often-large constituencies that are ready to complain loudly about their "essential" services should anyone try to reduce their funding or, worse, end them altogether.
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