Largest Deficit Ever

["Gary Santos" <evs@xxxxxxxxxxxx>]

UNRESTRAINED SPENDING LEADS TO LARGEST DEFICIT EVER

"This year's federal deficit should exceed $300 billion-the largest ever-as
the government's fiscal outlook grew grimmer thanks to surging defense
spending and declining revenue," reports USA TODAY
 http://www.usatoday.com/news/washington/2003-05-12-deficit_x.htm ).

"The new estimate by Congress' nonpartisan fiscal analyst comes as
Republicans try to enact a fresh round of tax cuts they say will stimulate
economic activity and generate increased federal revenue. Democrats say the
tax reductions will be a boon to the wealthy and make the worsening budget
picture even bleaker."

In a memo ( http://www.cato.org/new/05-03/05-13-03r.html ) issued yesterday
to journalists, Chris Edwards, Cato's director of fiscal policy, explains
that unrestrained federal spending is the real culprit behind the deficit.
"Under Bush's budget, total federal spending per year is expected to be $866
billion greater in 2010 than in 2003," he writes.  During the same time
period, the proposed tax cuts will only cost the government $30 billion per
year.

"Thus," writes Edwards, "federal spending increases will be 28 times larger
by the end of the decade than proposed investor tax cuts."

In the Cato Handbook for Congress
 http://www.cato.org/pubs/handbook/hb108/hb108-23.pdf ) Edwards offers
several suggestions for budget reform, including discretionary spending caps
and a balanced-budget amendment. "Both Congress and the administration must
end their shortsighted jostling for more taxpayer cash," writes Edwards.
"Not only is the government running huge deficits again, but the looming
explosion in entitlement costs demands that all aspects of the federal
spending empire be overhauled."