Budget Deficit Shrinking Quickly

The US budget deficit shrunk to $250 billion, according to CBO reports. This is just under 2% of GDP, which is lower than anyone predicted just a few years ago and is also lower than the average deficit over the past 25 years. Not bad for an administration that inherited a internet bubble burst, corporate scandals and 9/11.

The enormous increase in tax revenue (12% over last year) is credited with the deficit decrease. Funny - I thought those tax cuts were supposed to decrease government revenue?