Three things can be done with a dollar of surplus:  return it to the taxpayers, use it to pay down debt, or increase spending on a government program.  Team Obama and its allies suggest that if we had not cut taxes and the surpluses had remained in Washington, then all these surplus revenues would have been used to pay down debt.  I think it’s far more likely that Congress would have figured out ways to increase government spending (yes, sadly even with Republican Congressional majorities).  For me tax cuts vs. debt reduction is a tough call.  Tax cuts vs. (an uncertain mix of debt reduction and government spending increases) is a much easier choice.

Chait fires back:]]>