Atleast that seems to be the result:

WASHINGTON (AP) — Higher-than-expected tax receipts and the steadily growing economy have combined to produce an improved picture for the federal budget deficit, congressional analysts say.

The deficit for the current budget year, which runs through September 30, should be “significantly less than $350 billion, perhaps below $325 billion,” according to the Congressional Budget Office. The agency produces nonpartisan estimates for Congress and will put out a full update August 15.

…

Last year’s $412 billion deficit was a record in dollar terms, but economists say the more significant measure is against the size of the economy. In those terms, the current deficit picture — a $350 billion deficit for this year would equal 2.9 percent of gross domestic product — is significantly better than deficits witnessed in the mid-1980s and early 1990s. Then, deficits of 4 percent to 6 percent of GDP were common.

The biggest factors for the improving deficit picture are higher tax receipts from corporations and individuals. The economy is performing slightly above earlier administration expectations.

So those Bush tax cuts, both for individuals and for capital gains, were good afterall. Of course readers of my blog already knew this, since the supply siders have been saying this all along.

Update: The Wall Street Journal has more.