Decline in federal revenues largest since 1946.

• Position: News Briefs - Brief Article

The Congressional Budget Office's much anticipated mid-year projections revealed a startling statistic: the 6.6 percent decline in revenues from 2001 to 2002 was the most dramatic in 56 years. Although details on which taxes were hardest hit will not be available for another year or two, CBO officials speculated that slumping capital gains realizations and corporate profits were the most likely culprits for the decline. President Bush's $1.35 trillion tax cut did not appear to be a major factor. The non-partisan fiscal agency also released updated projections for the federal budget. Last year's estimate of...