There is no reason why we can't both cut taxes and balance the federal budget, according to NCPA Senior Fellow Bruce Bartlett. In support, he cites the experience of Michigan since John Engler became governor in January 1991:

• When Engler took office, the state had a $1.8 billion budget deficit, and the unemployment rate of 9.3 percent was 2.5 percent above the national average.

• Under Engler, 21 tax cuts have been enacted, saving taxpayers $1.3 billion.

• Not only was the budget deficit also eliminated, but the state now has close to $1 billion in surpluses in a "rainy day" fund.

• After 25 years with an unemployment rate above the national average, Michigan now has a rate well below it.

• State revenues, which fell by 6 percent in fiscal 1991 in real terms, have risen in real terms every year since.

Cutting taxes and balancing the federal budget are both popular ideas: a May Gallup poll found that 55 percent of Americans agree it is possible to have tax cuts and deficit reduction at the same time.

Source: Bruce Bartlett (National Center for Policy Analysis), "Waiting Game for Dole's Tax Cut Plan," Washington Times, July 22, 1996.