FEDERAL SURPLUS: TIME FOR TAX RELIEF?

In the past 12 months through November, the federal government has achieved a remarkable milestone. Figures from the Treasury Department show the government took in $1.599 trillion in revenue and spent $1.597 trillion, leaving a surplus of $2.4 billion.

The size of the surplus is probably less important than the fact that there was anything left over at all, considering the many years of deficit spending. But it may be too early to bask in the surpluses. A better gauge of the nation's budgetmindedness will come at the end of the government's budget year next June. If there is still a surplus at the end of that 12-month period, it will truly be an achievement worth celebrating.

As could be expected, the positive figures for the last 12 months have set off the usual credit-taking by politicians. Republicans and Democrats alike are pointing to at-times sour budget negotiations that promised to balance the budget after the turn of the century. The earlier-than-expected surplus -- if it holds -- is due to a strong economy.

There are a couple of conclusions that can be drawn from the latest budget news.

One is that spending controls on the part of the government has the effect of helping the economy. Remember trickle-down economics? Given the chance to operate in a climate of clamps on government spending, the economy responds by prospering and growing. The idea that the government will hold expenses in check is always a signal to private enterprise that the burden of government has been lightened to a great extent.

Which leads to the second conclusion: Budget surpluses and a growing economy are definite sign of an opportunity to lower tax burdens. Most states, enjoying the good economic times, have recognized that taxpayers ought to enjoy some relief. However, both the federal government and Missouri's state government seem to take a different view. Basically that view holds that if there is more money to spend, then spend it.

It is disheartening to see bureaucrats and politicians talking about what they can spend more money on rather than about ways to give tax breaks. It would be nice to think that there is a bright future for the country economically. But there are still thunderclouds of tax-and-spend on the horizon.