The economy is booming right now. Economic growth is flirting with 5% over this quarter. The Fed Chairman Ben Bernanke (if that's his real name) is likely to raise federal reserve lending rates again. If I'm to believe the heart and soul of supply-side economics then this is the time that our deficits should be disappearing.
I'm not going to argue with anyone about how lower tax rates can increase actual tax receipts. Every serious economist from Friedman to some schlub down at Schwab understands this is true. Hell, play Sim City for awhile and you'll understand it's true...anyway....
But where supply-siders continue to LIE to us is that they're not really interested in reducing the deficits. They only sell that as one of the benefits to lowering tax rates for high wage earners. Because of this they're always being accused of giving tax breaks to their rich buddies. Whether it's really true or not doesn't matter to me...it looks true.
It's time for supply-siders to take this cash that has been bringing in federal receipts hand over fist and start paying down. Don't let it sit around in your precious general fund to be yet again swallowed up by another omnibus package.
Will they do this? Probably not and this is one reason alone that anyone in Washington who claims to be a fiscal conservative is a liar. If you keep sending fiscal conservatives to Washington then be prepared to watch your dollar shrink in your wallet.