President Bush is crediting his tax cuts with shrinking the federal budget deficit.
The Bush administration reported the deficit had trimmed down to about $163 billion in the recent budget year. That's the lowest amount of red ink in five years, and the president says it represents a below-average 1.2% of the gross domestic product.
After meeting with his economic team,Bush said low taxes can "grow the economy," and that by being "fiscally responsible," the budget can be brought "toward balance."
This year's figure sliced more than 34% off the previous year's deficit, which totaled nearly $250 billion.
Bottom line: Tax cuts work.
Imagine how good these numbers would look if they could get spending under control.