Wednesday, June 2, 2004

The Joint Economic Committee today released a report, What Happened to the Surplus?, that explains how we went from a $5.6 trillion cumulative estimated surplus for fiscal years 2002-2011 to today’s estimated $2.9 trillion deficit for the same 10-year period. The report notes that “[s]ome observers argue that tax cuts enacted in 2001, 2002 and 2003 are to blame for the emergence of deficits, but CBO’s numbers tell a different story.” According to the Committee, only 24% of the budget shortfall can be traced to the tax cuts. Bigger contributors are:

• Weak Economy (40%)
• Increased Spending (36%)

For a chart detailing these figures, see here.