The Bushies have used rising tax receipts since 2004 as supposed proof that tax cuts pay for themselves — carefully ignoring the fact that revenues plunged in the early years of the administration, and that the subsequent rapid growth basically just gets us back to the previous trend. Also, they’ve pretended not to notice that mainly the revenue comes from an incredible surge in corporate profits, the byproduct of an economy in which economic growth leaves most workers behind.
But anyway, the revenue surge is over.
In an update, Krugman provides this graph of tax revenue as a percentage of GDP since Clinton took office:
And this statement:
And a further slowdown is visible within the fiscal 2007 data: revenue in September was up only 2 percent from the previous year.