By all accounts, the booming U.S. economy has given the federal government enough money to provide continued and expanding surpluses. Congress and the Clinton-Gore Administration are taking credit for the surplus and are clamoring to spend it. But the truth of the surplus lies in the details. It is true that in fiscal 2000 the federal government will bring in more revenue than it will spend. Another reason to hold off on the party hats and streamers is that more money is being taken from taxpayers to finance this surplus.
Revenues are at an all-time high.
Without the increased revenue there would be no surplus. The government isn t getting smaller, it s getting bigger, and so is the tax burden on many Americans. Taxpayers should be thankful that the government will not spend more money than it takes in this year. A strong and continued surplus is contingent upon a change in Washington s wasteful ways. This would have the salutary effect of lower interest payments and more money to fuel economic growth.