The theory is that if taxes are lowered, then spending will go down so expenses meet revenues. Therefore, according to this theory taxes should be cut first.
Part of President Bush’s greatness is that he is the first president in the history of America (maybe the world) to lower taxes in time of war. Unfortunately, the Democrats (and some Republicans) in Congress refused to reduce spending, which has resulted in increases in budget deficits and a larger national debt (though as a percent of GDP, the national debt is fairly small, but growing).
As I said, spending cuts just don’t happen the way we’d like.