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1. The fiscal position of the United States has deteriated under George Bush for main reasons. The first reason is that George Bush has cut taxes greatly while the second reason is government spending under the war effort has dramatically increased. Therefore the national deficit is rising at all time highs making the rich get more tax cuts wrecking the economy and mortgaging the future for America's children.

. The distinction between a stock and a flow is that a stock increases or alters meanwhile a flow increases or alters wealth creating people to spend more money as there income increases. This makes tax cuts shift the burden to wage income.

. The Congressional Budget Office projections are mythical because the numbers are largely assumed that much of the tax take of the bubble years are permanent. These projections and assumptions bear no resemblance to reality. These assumptions are made by law and are extremely implausible.

4. In the short tem America's fiscal shift has been dramatic but not dangerous. Deficits grow and flow naturally from a sharp economic slowdown as tax revenues fall and benefit spending rises. It is a result of over a three year time. The medium term picture is a different matter. Budget rules require Congress's number-crunchers to project the impact of tax and spending decisions over the next 10 years.

5. The Alternative Minimum Tax is a tax attempt to stop rich tax payers avoiding tax by over using deductions. It has a lower rate but allows virtually no deductions. If your tax bill is higher using the AMT formula that is what you must pay.

6. America's deficit to GDP ratio in the last 5 years has decreased gradually from a high at .1% to a low of 4.% and in the next years thereafter continually decreases.

7. President George Bush is less of a tax reformer than President Ronald Reagan was. The other big difference was that President Reagan was not averse to putting up taxes when too much red ink appeared. Taxes were raised several times during his presidency. Congressional rules on deficit reduction were introduced during Mr. Reagan's' second term. Team Bush has shown no such flexibility when it comes to taxes.

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