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The annual deficit has fallen 32% over the first seven months of this fiscal year compared with same period last year, according to Congressional Budget Office figures released Tuesday.
A major reason: A big jump in tax revenue.
Tax collections rose by $220 billion -- or 16% -- between the start of the fiscal year on Oct. 1 through April 30. Individual and payroll taxes accounted for $184 billion of that increase.
The tax haul rose sharply primarily because wages and salaries were higher, the payroll tax cut of the past two years expired on Jan. 1 and the fiscal cliff deal brokered over New Year's raised tax rates on high earners.
Spending, meanwhile, fell 1.9% year over year, the CBO estimated.
The biggest percentage drop occurred in the payment of unemployment benefits, which were down nearly 25%, or $15 billion. Defense spending fell 5.3%, or $20 billion, and "other activities" -- primarily spending on nondefense programs -- fell 8.6%, or $58 billion.
Ooh no, that cant possibly be true. One thing you liberals have been whining about is that a falling federal spending will result in an economic crash and less revenues.
While the country has still racked up an estimated $489 billion deficit in the first seven months of this year, that's about a third less than the $720 billion recorded for the same period last year
I suppose we should cheer that we'll finally have deficits under $1T, or we could once again take the stupid liberal ideology and whine because lower deficits will crash the economy..
How much spending did the Democrats cut in total? Compare that to the "austerity" countries. After that, compare it to Ryan's budget proposal and Paul's proposal, both fall under the austerity category and that definitely would have crashed the economy.
Ooh no, that cant possibly be true. One thing you liberals have been whining about is that a falling federal spending will result in an economic crash and less revenues.
While the country has still racked up an estimated $489 billion deficit in the first seven months of this year, that's about a third less than the $720 billion recorded for the same period last year
I suppose we should cheer that we'll finally have deficits under $1T, or we could once again take the stupid liberal ideology and whine because lower deficits will crash the economy..
It sounds to me like you are bothered that Obama and the Dems in Congress were extremely successful at cutting down the annual deficit?
How much spending did the Democrats cut in total? Compare that to the "austerity" countries. After that, compare it to Ryan's budget proposal and Paul's proposal, both fall under the austerity category and that definitely would have crashed the economy.
What other countries have done is irrelevant. Ryan was on the deficit gang of eight and that plan would have made radical cuts to spending while lowering some taxes, but he voted against it when he realized GOP won the House.
What other countries have done is irrelevant. Ryan was on the deficit gang of eight and that plan would have made radical cuts to spending while lowering some taxes, but he voted against it when he realized GOP won the House.
I bet it's because even he knows that radically cutting the budget actually makes the deficit grow bigger. Of course he would have voted for it if he knew the budget had no chance in hell of passing, like if the Democrats controlled the House. Political theater and posturing is all that he did
Ooh no, that cant possibly be true. One thing you liberals have been whining about is that a falling federal spending will result in an economic crash and less revenues.
While the country has still racked up an estimated $489 billion deficit in the first seven months of this year, that's about a third less than the $720 billion recorded for the same period last year
I suppose we should cheer that we'll finally have deficits under $1T, or we could once again take the stupid liberal ideology and whine because lower deficits will crash the economy..
The CBO expects the deficit for 2013 to shrink $845 billion from a peak of $1.4 trillion. Much of the deficit is automatic stabilizers, which will rise slightly in 2013, to 2.5% of GDP due to weakness in the economy, which is caused in part by the fiscal tightening and sequestration that is occurring in calendar year 2013. Automatic stabilizers accounts for about half of the estimated deficit this year. Those stabilizers will remain at 2.5 percent of potential GDP in 2014, accounting for roughly three-quarters of the projected deficit in 2014.
After 2014, the projected effect of automatic stabilizers on the budget deficit shrinks steadily, dropping to 0.2 percent of potential GDP in 2017 and about zero in 2018. In 2018 and beyond, CBO projects that output will equal its potential, so the automatic stabilizers will have essentially no effect on the budget.
Some people are just wired with a negative mindset. Whatever happens, they will always look for something to complain about. Such people are best ignored.
It sounds to me like you are bothered that Obama and the Dems in Congress were extremely successful at cutting down the annual deficit?
Another win for the Dems !!!
Haha, wait a minute, I thought it was the Republican "Congress" to blame for cutting spending.
This is why you guys are laughed at non stop...
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