GayPatriot notes that the US government ran a surplus in December:
The U.S. government ran a $1 billion budget surplus in December, helped by a rise in corporate tax payments, the Congressional Budget Office said in its latest budget report released on Friday.
The surplus, which compared with an $18 billion deficit in the previous December, helped create a smaller fiscal deficit for the first three months of the 2005 fiscal year, than in the same quarter of the prior year.
Of course, it helps that Congress wasn’t in session and therefore couldn’t spend any money and screw more things up. The fact that corporate tax payments have increased despite Bush’s tax cuts shouldn’t be a surprise to those who understand supply-side economics — when American enterprise does well, they create more taxable wealth. This shows that we’re on the right side of Laffer curve and revenues are doing well.
But revenues are only one side of the equation. Congress must restrain its prolifigate spending habits. Given that Congress seems to be habitually unable to stop spending like drunken sailors, I’m not holding my breath for that – which is why the President may have to use his veto power in order to make sure that this good budgetary news isn’t wiped away in a flood of pork.