Tax cuts are spurring growth, but federal spending continues to rise

Stephen Moore writes a piece entitled, "Real Tax Cuts Have Curves: The economy booms, and Arthur Laffer has the last laugh":

Earlier this month the Congressional Budget Office released its latest report on tax revenue collections. The numbers are an eye-popping vindication of the Laffer Curve and the Bush tax cut's real economic value. Federal tax revenues surged in the first eight months of this fiscal year by $187 billion. This represents a 15.4% rise in federal tax receipts over 2004. Individual and corporate income tax receipts have exploded like a cap let off a geyser, up 30% in the two years since the tax cut. Once again, tax rate cuts have created a virtuous chain reaction of higher economic growth, more jobs, higher corporate profits, and finally more tax receipts.

But on the down side, Moore (like Allister Heath) also writes,

The CBO also reports that federal expenditures are up $110 billion, or 7.2%, so far this year as the congressional Republican spending spree rolls on.

I wish the Republicans would walk the walk of smaller government. It's shameful that the party of small government controls Congress and the presidency and still cannot--or will not--cut the size of non-defense related federal government.

Don't get me wrong, though. I'll still take a party which cuts tax rates, is hawkish on the War on Terror, and talks about but does not deliver smaller government over a party which would raise tax rates, be dovish on the War on Terror and increase the size of government.