Federal deficit now lowest in 4 years

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[Sub-Driver]

Federal deficit now lowest in 4 years

By MARTIN CRUTSINGER, AP Economics Writer 4 minutes ago

The federal budget deficit, helped by a gusher of tax revenues, fell to $247.7 billion in 2006, the smallest amount of red ink in four years.

The deficit for the budget year that ended Sept. 30 was 22 percent lower than the $318.7 billion imbalance for 2005, handing President Bush an economic bragging point as Republicans go into the final four weeks of a battle for control of Congress.

Both spending and tax revenues climbed to all-time highs. The sharp narrowing of the deficit reflected the fact that revenues climbed by 11.7 percent, outpacing the 7.3 percent increase in spending.

The 2006 deficit was far lower than the $423 billion figure the administration had projected last February and also represented an improvement from a July revised estimate of $295.8 billion.

It was the smallest deficit since a $159 billion imbalance in 2002, a shortfall that came after four straight years of budget surpluses, the longest stretch that the government had finished in seven decades.

Since that time, the government has recorded three of the biggest deficits in history in dollar terms including an all-time record of $413 billion in 2004.

The reason for the improvement this year was the big jump in revenues, propelled by strong economic strongth.

[steve-b]

If more rational accounting rules were used, say those that required for incuding future pension liabilities (like, for instance the rules the Government requires OTHER big entities like GM and Ford to use) then the so-called "surplus" would have been revealed as a very deep deficit.

If the same rules were used consistently, the drunken-sailor spending of this regime would be even more obviously outrageous.

[expat_panama]

"War does create "drunken sailors."    "WWII did so legitimately..."

According to the dedicated misery mongers from the loony left, all news is bad news and it doesn't matter if the deficit is going up or going down.   Those of us who work for a living see increased income and reduced debt as well, good!

--but that's just how we see it...

[jrooney]

The 1990's BEFORE THE 911 Attacks which cost our economy trillions, before the disclosure of 100's of companies inflating their earnings (which began under Clinton's watch), before the collapse of the tech industry and before the war on terror began / fighting two wars in Afghanistan and Iraq (While Clinton let the Al Qaeda grow, train more terrorists and ignored about 8 times to kill Osama).

Anyone that trys to compare the deficit of the 1990's, is like Clinton and wants to rewrite history and forget about some of the facts that have led to this deficit. it is going down, that is all that matters.

[jrooney]

It is going down. What do you think will happen with a Pelosi house and a Reid senate??????

[jrooney]

What do you think Pelosi and Reid will do if in power? There are other contributing factors to the deficit. See post #23, unless you want to try and rewrite history.

[soccer_maniac]

Just see how much we're spending

http://www.fedspending.org/faads/tables.php?tabtype=t2&year=2005&subtype=t

-- how much would you be able to cut if you were in charge?

[Sir Gawain]

What do you think Pelosi and Reid will do if in power?

What does that have to do with Republican spending, Mr. Strawman?

[jrooney]

Sky is falling nothing good ever happens I am so depressed its ALL REPUBS FAULT whiner, democrats will make it worse and there are contributing factors that led to the deficit besides repubs over spending, unless you want to pull a Clinton and rewrite history.

[expat_panama]

"What does that have to do with Republican spending,"

Apparently Mr. Big-government-liberal hates republican tax cuts-- no matter how low the deficit goes.

[jrooney]

Besides your point carries no weight from the "European Message Board." Take a hike. Our economy kicks the crap out of all of Europe's combined. You must be you jealous.

[jrooney]

It is amazing. We have low taxes, great job growth, low unemployment, a strong econmy and the deficit is going down and out come the whiners about over spending. Well, if the deficit is going down, they are no longer over spending, so these freepers should get over it because IT IS OLD NEWS.

[Sir Gawain]

So the Clinton years were really a big deficit? Who controlled Congress during the Clinton years? Oops. Two wrongs don't make a right. Just because Dems spend like crazy doesn't mean it's ok for Repubs to do the same. Well it's not ok to anyone but party hacks such as yourself.

[Sir Gawain]

Besides your point carries no weight from the "European Message Board." Take a hike. Our economy kicks the crap out of all of Europe's combined. You must be you jealous.

ROTFL you assume too much. Who said I lived in Europe?

[libertarianPA]

Well, if the deficit is going down, they are no longer over spending, so these freepers should get over it because IT IS OLD NEWS.

They're no longer over spending? I'm sorry. Did you forget the concept of a deficit? The fact that there is one AT ALL means they are over spending!

Personally, I love how all the sheep here don't hold their "conservative" party accountable to the supposed values that got them elected. By saying it would be worse with the Dems (which it would), you're basically excusing the betrayal of conservative values. And that's why no one - not even a Republican - will ever deem in necessary to curb the pork barrel spending that is so rampant in Washington. Because all of you just tow the party line and say, "That's OK. At least the Democrats aren't in office."

It seems you've accepted the fact that our country is going to be lost. You're just comfortable with the fact that with the Reps, it'll just take a little longer.

[jrooney]

I understand, you are European and you can not read my posts. That is okay. I never wrote Clinton had a large deficit. BTW the repubs controlled the purse strings and balanced the budget then, not Clinton. Other factors since Bush took office contributed to our deficit. Why would someone from a "European Message Board" care about our economy , UNLESS YOU ARE REALLY, REALLY JEALOUS because all of Europe can not get their act together. We have lower taxes than you, we have lower unemployment than you and our econmy runs circles around yours.

Your little posts here to try and depress the conservative vote in our elections will not work. Now get back to your Chirac back rub.

[jrooney]

If the deficit is going down, that means we are making more than we are spending. OKAY.

[Sir Gawain]

I see it's not that hard to confuse you. The flag I fly on my profile means nothing. I think I'll change it to Japan now. I'm kinda bored with the EU one. Hope that doesn't throw you off too much.

[libertarianPA]

I don't know who taught you economics, but they should have their teaching license revoked. If, by the end of 2006, there is a zero deficit, THAT means we are making more than we're spending. The deficit is LOWER than it was last year. Those two words, "the" and "deficit", mean that there IS a deficit, and by default, we are still overspending!

[Sir Gawain]

I think you're wasting your time.

[jrooney]

Not all all. It just shows me your maturity level. It is prepubesence.