I was interested in some of those numbers myself. The difficult part is trying to figure out the change in revenue due to tax cuts. Since the 2002 tax cuts were across the board, it would have to be figured for every bracket. One would also have to assume the "static" model, i.e. no economic growth due to more money kept in the private sector.

Looking around, I did find this chart, which seems to itemize the current Bush tax cut program on a year-to-year basis.

The chart is from a liberal site (Citizens for Tax Justice) complaining about how most of the tax cuts end up benefitting those who pay most of the taxes (oddly enough), but that's another thread.

I'm assuming for this argument that their numbers are correct.

According to the chart, in 2001 the tax revenue was reduced by $58 billion, in 2002 by $80 billion, and in 2003 by $81 billion.

Since the original post was based on only six months of 2003, let's go with those half-year numbers. I am assuming all the numbers in the AP report Don quoted are also accurate. Go over my numbers, and let me know if I mess up:

S3 (Revenues in the first half of 2003) = $1.08 trillion

S2 (less 6.6 percent to get revenues in the first half of 2002) = $1.01 trillion

R3 (Revenues--all sources for first half of 2003) = $825.2 billion

R2 (add 6.1 percent to get revenues in first half of 2002) = $875.5 billion

Static revenue reduction due to tax cuts in 2003 = $40 billion (half the annual cuts from the chart)

I don't know if your equation works as advertised, but we can see that spending went up by about $70 billion in the first six months of 2003. Revenues dropped by $50 billion. The deficit in the first half of 2002 was $134.5 billion. The deficit in the first half of 2003 was $254.8 billion (close enough to $252.6 billion). A deficit difference of $120.3 billion.

You can judge for yourself how much $40 billion in tax cuts counts in all this. Again, with the static model, assuming placing $40 billion into the private sector creates no economic growth.

The fact is that revenues aren't anywhere close to balancing spending, tax cut or no tax cut.

Unless we get some real economic growth, or get a handle on spending, or both, nothing's going to get better. Republicans believe that leaving capital in the private sector creates economic growth. Democrats believe that the same capital taken from the private sector and put in the hands of the government creates economic growth.

Both parties enjoy spending taxpayer money.