A trillion here, a trillion there

In 2009, President Barack Obama pledged to cut the federal budget deficit in half by 2013.

In fact, the federal deficit has topped $1 trillion in each of Mr. Obama's first three years in office.

Republicans have rejected the administration's proposed tax increases and instead want deeper cuts in government spending. The GOP-controlled House has passed a budget that calls for Medicare reform, slowing the rate of growth of other programs, tax reform and a new round of tax cuts.

The underlying question at issue is whether tax increases - on anyone - would be likely to reduce the deficit. It may be counterintuitive, but current income and revenue trends indicate they would not result in less federal borrowing.

"The federal budget deficit is approaching $1 trillion for a fourth straight year even though the government is collecting more tax revenue than last year," The Associated Press reported last week.

The Congressional Budget Office now forecasts the deficit for the 2012 budget year, which ends Sept. 30, will total $1.17 trillion - slightly lower than the $1.3 trillion deficit recorded in fiscal 2011.

Yet thanks to modest economic growth, government receipts are actually running 5.3 percent higher than a year ago. Receipts in May totaled $180.7 billion, the second-best tax take in history for the month of May.

Why haven't the rising tax revenues further reduced the deficit? Because whenever members of Congress get their hands on more money, they spend it.

In fact, every time they find an extra three dollars, they spend five, which is why Congress now consistently borrows 40 percent of everything it spends. With that kind of spending habit, how can more tax revenue help? In fact, it does nothing but further prime the spending pump.

Tax cuts approved during President George W. Bush's administration are scheduled to expire at the end of December. In addition, a set of automatic spending cuts totaling about $1.2 trillion over 10 years are scheduled to kick in.

Won't that start to reduce the deficits?

Not if Congress keeps spending everything that comes in - and then some. The only solution is to combine policies that stimulate economic growth - and thus increase tax revenues - with a commitment to fiscal restraint instead of government expansion. Our future depends upon it.