Red Tide Rising Whoops. No sooner had Mr. Bush signed that tax cut into law than those same officials began admitting that the budget outlook wasn’t that rosy after all. In fact, revenue is dropping like a stone. A suspicious man might wonder about the timing: isn’t it strange that the bad news on revenue came to light only after the tax cut had passed?

In any case, get ready for more bad news. When the Budget Office updates its projections next month, it is certain to mark them down, not up — and that will be just the beginning of a dismal trend. Forget about those budget surpluses as far as the eye can see; from now on the prospect is for chronic budget shortfalls.

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