Posted on 06/12/2007 1:37:45 PM PDT by RightOnTheLeftCoast
Federal Deficit Sharply Lower
Jun 12 03:28 PM US/Eastern By MARTIN CRUTSINGER AP Economics Writer
WASHINGTON (AP) - The federal deficit is running sharply lower through the first eight months of this budget year as growth in revenues continues to outpace the growth in spending.
The Treasury Department said that the deficit through May totaled $148.5 billion, down 34.6 percent from the same period a year ago.
That improvement came even though the deficit in May increased to $67.7 billion, up 57.8 percent from May 2006. However, analysts attributed this big increase to the fact that the Internal Revenue Service was more efficient in processing tax returns this year, meaning more revenue was collected in April with fewer tax collections left to be counted in May.
For the year, revenue and spending are both at record levels. Revenue gains are up 8 percent while outlays are up at a slower pace of 2.5 percent, compared to the same period a year ago. Growth in spending has been slower this year in part because of the absence of last year's huge outlays for hurricane relief.
The increase in revenues has been supported by continued strength in corporate profits and low unemployment, which has helped to push individual income taxes higher.
For the 2007 budget year, which ends on Sept. 30, the Congressional Budget Office is projecting a federal deficit of $177 billion. That would be down 28.7 percent from last year's imbalance of $248.2 billion, which had been the lowest deficit in four years.
The federal budget was in surplus for four years from 1998 through 2001 as the long economic expansion helped push revenues higher.
In the budget President Bush sent Congress in February for 2008, he projected that the government can return to a surplus by 2012 even if his first-term tax cuts are made permanent.
Democratic critics, however, contend that Bush's spending blueprint was based on unrealistic assumptions and left out major spending items such as the full costs of the Iraq war. They also argue that the current improvement in the deficit will be only temporary as the 78 million baby boomers retire, pushing spending on Social Security and Medicare up in coming years.
And “coincidentally” we have reports of stalled economic growth. Figures. The AMT represents a huge, huge tax increase hitting the very heart of America’s economy.
I got walloped by the AMT and you had better believe it has effected my buying decisions.
It affected mine as well, in that I formed another company that buys things I use.
Notice they use the negative adverb “sharply” to describe it...I expected the sub headline to read “Women, Minorities Most Affected”
Good News: Revenue Up!
Bad News: Spending UP!!
Worse News: Democrats run Congress Now!!!
Can’t wait for the dems to hike taxes, hike spending, impoverish all of us and wreck the economy. Just wait, folks; their next target is a confiscatory levy on your retirement mutual funds. The Courts, packed with their lackeys, will not find it unconstitutional.
Taxes cut and revenues up?
That doesn’t compute for the static system, zero sum game Democrats.
I can attest that my taxes are too high, and that revenues to the Fed have to be extremely high; my checks are too.
That doesn’t compute for the static system, zero sum game Democrats.”
Great comment. Why is it that these wonderful government economists are always wrong? It seems about time that we send them back into the private system and see if any can make a living at their real jobs of shinning shoes!!!
The war won't continue forever, assuming they let us have a chance to win first, that is.
EVEN IF???? How about "because of" - the tax cuts are what helped the economy grow to its current level.
The Federal Reserve is going to take care of that.
Or maybe the economy is already slowing down, or a combination of both.
Seems the "slowing economy" exists only as a figment of your imagination.
Intresting isn’t it how all the “Reagan Conservaives” in the supposedly “Conservative alternative media” cannot be bothered to report on this?
Intresting how even on a supposedly “Conservative” website like this this story is either ignored or derided?
An Conservatives wonder why they cannot get any of their Political agenda done?
In two threads there are something like 15 posts on this subject.
If WE can't push the news, Bush is doomed. Most "conservatives" don't seem to have a problem with that, but I don't see how bashing Bush's good economic moves helps conservatism.
“I got walloped by the AMT and you had better believe it has effected my buying decisions.”
So in 18 months not only will you have the AMT but will also have higher taxes.
Yeah, that should put us into prosperity.
Those revenue gains are for the year to date. My comment was clearly about the month to month comparisons.
After my first Econ class, Econ 101, my professor asked us to send comments on what we thought of our first class in Economic Science.
I wrote that he had a lot of gall calling it a “science”.
At best it is a social study in human behavior.
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