President Biden’s proposed budget for 2023 released Monday reveals strong growth in federal tax revenues. This is good news. If policymakers now put some focus on spending restraint, they can reduce the government’s dangerously high deficit levels.

The revenue surge came as a surprise to government economists. The chart below compares the new Office of Management and Budget March 2022 baseline projections to prior baseline projections from the OMB in May 2021 and the Congressional Budget Office in July 2021. These are fiscal years.