Budgets Houston-Style
It occurs to me now what happened in 2001. The government decided to use the projections to make a contract with the American people. The government said in this contract that it would keep taxing us at the same rate over the next ten years. As a result of said contract we were left with a huge surplus. The government then booked the 2011 profits of the contract in 2001. It now needed to deal with the profits it had booked. Thus it decided to phase in increasingly large tax cuts over the next ten years to keep the 2011 profits it had booked in check. An interesting way of accounting. Where have I read about book profits over the life of a contract immediately?
- posted by levinson @ 9/12/2002 09:16:00 AM