Dear Taxpayer:

Even as America dedicated significant new emergency spending against terrorism in 2002, non-defense discretionary spending also grew at near-record levels. With the exception of one category—interest on the national debt—the overall increase in federal spending in 2002 was the largest in American history.

Moreover, despite real growth in the U.S. economy of over 3% in 2002, tax revenues fell for the second consecutive year. The result was the first deficit in five years. To avoid a return to chronic deficits, controlling spending and encouraging stronger economic growth must be our highest fiscal priorities.

These are just some of the important facts and inferences that can be drawn from this year’s Annual Report. Each year since 1989, I have provided this summary of the federal government’s financial operations because you, as a taxpayer, are entitled to it. I hope you find it useful.

 

Sincerely, Christopher Cox Chairman House Policy Committee

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