Dear Taxpayer:

The economic slowdown that began in the third quarter of 2000 was already well underway on September 11. Since then, job losses and a further decline in revenues in key sectors of our economy have occasioned higher federal social spending, while dampening federal tax collections.

Nonetheless, fiscal 2001 resulted in the second-highest federal tax surplus in history, and the fourth consecutive year of surpluses in the federal Treasury. These surpluses have been used to pay down over one-half trillion dollars in federal debt.

Today, putting Americans back to work is of vital importance to winning the War on Terrorism. That is why President Bush has called on Congress to pass an Economic Security bill to reduce tax burdens on job creation.

The sensitivity of the federal budget to the overall health of the economy is just one of the important facts that can be gleaned from this year's Annual Report. Each year since 1989, I have provided this summary of the federal government's financial operations because, as a taxpayer, you are entitled to it. I hope you find it useful.

 

Sincerely, Christopher Cox Chairman House Policy Committee

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