Posted on 02/21/2007 12:39:06 PM PST by RWR8189
Despite the ongoing costs of US military campaigns in Iraq and Afghanistan, the outlook for the federal budget has grown substantially brighter.
Tax revenues are rising much faster than spending, according to Treasury Department numbers released last week. The recent trend is strong enough that, were it to continue, the budget could move into surplus in barely a year, one economist calculates.
Already, the federal deficit is shrinking toward about half the size that it has averaged since 1970, when analyzed as a percentage of gross domestic product.
The shift reflects a strong economy, with higher incomes and corporate profits generating a bigger flow of tax revenue. In turn, the Treasury's progress could help the economy by buoying investor confidence in the nation's fiscal position.
Although it is a welcome change, the improvement does little to stave off the long-run challenges to the nation's financial health, many economists say. Baby boomers are starting to retire, placing new demands on government. Costs for healthcare programs like Medicare are still projected to rise faster than overall inflation.
"The picture is getting brighter," and if there's no recession over the next several years "there are going to continue to be some good strides made," says Mark McMullen, a senior economist at Moody's Economy.com in West Chester, Pa. But "it's unlikely that we're going to see a balanced budget anytime in the near or long term."
(Excerpt) Read more at csmonitor.com ...
Yes, and when Hillary said that Bush wasn't doing anything for our economy, she should have been given a pie in the face and told what a bald faced liar she is!
bookmark
Here's the obligatory, "IT'S ALL BUSH'S FAULT"
...she should have been given a pie in the face and told what a bald faced liar she is!
----
It runs in the Clinton family. LIARS ALL. It is their profession and life blood, the parasites that they are.
Cutting tax rates increases tax revenues --- I just hope (though I rate it very unlikely) that the Democrats will finally realize this and not let the tax rate cuts expire.
This DESPITE a world war against the islamo scum. Now if the GOP had any spine and helped Bush reform SS, instead of tucking tail like the pussies they were, we'd be alot farther ahead.
Whatever happened to the dire predictions that China was buying up our debt and would use it to cause economic havoc?
They could have balanced the budget last year if they'd wanted to. I don't think they will want to any more next year than they did last year.
The true facts with regard to the economy will never be allowed to get in the way of dem lies.
You got that right!
The Chinese are still buying up our debt. The real problem has never been the budget deficit but the merchandise trade deficit.
This is potentially a very serious long term problem.
yes....and plan on sticking it in the rats face...
The trade deficit is not subject to Chinese ownership. You cannot "buy-up" trade because there is nothing to own. Trade deficit is excess of imports over exports or of exports over imports. Budget deficit is when the Government must borrow money to pay it's operating expenses and this creates a budget deficit. The Chinese Government was buying up this debt paper to place the US in a vulnerable position.
HA HA!!! Balanced budget......good one......
Not anymore.
The Democrats are in power now, so they'll get all the credit :(
You are correct to point out that the owner of the debt is irrelevant. But that is not my point. We are buying more than we are selling and creating money to pay for it. This is potentially inflationary.
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