March 14, 2001 02:38 PM | Permalink |
In January of 2001, the Congressional Budget Office increased its estimate of the ten-year federal budget surplus by almost $1 trillion. CBO’s latest revision brings the ten-year total projected surplus to $5.6 trillion. Congressional tax-cutters–and President Bush–see the new projections as an even more compelling argument for substantial tax cuts. On March 8, House Majority Leader Dick Armey declared that “over the next 10 years, American taxpayers will be overcharged by a staggering $5.6 trillion.” Yet the total amount of surplus revenues available for tax cuts is less than what these rosy figures would indicate. Here’s a brief summary of how the projected surplus really adds up in the wake of CBO’s latest projections–and how the Bush plan would affect the available surplus.