The CBO BS Meter Is Officially Off the Charts

This item reported by AP last Wednesday was a rollicking knee-slapper (fifth paragraph):

The latest CBO figures, released Wednesday, also predict the budget could come back into surplus by 2012, although that would require Bush’s tax cuts to expire at the end of 2010 as under current law. The surplus for 2012 would reach $170 billion.

CBO, you guys are killing me. Taxes were CUT in 2001 and 2003. In 2004, 2005, and 2006, tax receipts skyrocketed because of increased economic activity and the free flow of capital (5.5%, 14.5%, and 11.7%, respectively).

So “obviously” you guys at the CBO think that the very tax cuts that have led to the last 3-1/2 years of strong economic growth and brought about the explosive revenue growth noted above just have to be allowed to expire — to bring the budget into balance. No one will keep their capital locked in once taxes on dividends and capital gains go way up again. No, of course not.

CBO, you need to take this act on the road. You’ll have ‘em laughing in the aisles. The only problem is, your audience won’t be laughing with you — they’ll be laughing AT you.

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UPDATE: The New York Times’ Edmund Andrews (probably requires registration) wants to be part of the act too (bold is mine) — “The nonpartisan Congressional Budget Office predicted on Wednesday that the federal budget deficit would shrink again this year and could actually swing into a surplus in 2012 — but only if President Bush’s tax cuts expire in 2010.”