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Surprising Jump in Tax Revenues Curbs U.S. Deficit WASHINGTON, July 8 — An unexpectedly steep rise in tax revenues from corporations and the wealthy is driving down the projected budget deficit this year, even though spending has climbed sharply because of the war in Iraq and the cost of hurricane relief.

If you guessed, “This is not actually a surprise to anyone who’s ever seen a Laffer Curve,” you are correct.