Read all of Krugman's article:
"Even conservatives are starting to admit that George Bush isn't serious when he claims to be doing something about the exploding budget deficit. At best — to borrow the already classic language of the State of the Union address — his administration is engaged in deficit reduction-related program activities."
Krugman also points out that "Federal tax receipts as a share of national income are now at their lowest level since 1950." Yet, "taxes that fall mainly on middle-income Americans, like the payroll tax, are still near historic highs," thanks to the Bush 'tax cuts'.
The ones he wants to make permanent.