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Current deficit plunges 32%
CNN Money ^ | 05/10/2013 | Jeanne Sahadi

Posted on 05/11/2013 10:02:35 AM PDT by SeekAndFind

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.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Government
KEYWORDS: abortion; budgetdeficit; deathpanels; deficit; obamacare; partisanmediashill; partisanmediashills; zerocare

1 posted on 05/11/2013 10:02:35 AM PDT by SeekAndFind
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Comment #2 Removed by Moderator

To: SeekAndFind

See also here:

http://thehill.com/blogs/on-the-money/budget/298291-cbo-shows-budget-deficit-decline

CBO shows decline in budget deficit

EXCERPT:

The Congressional Budget Office reported Tuesday that the federal budget deficit is declining this year compared to fiscal 2012.

For the first seven months of 2013, the deficit was $489 billion. That is $231 billion less than the budget shortfall for the comparable period last year.

The decrease is almost entirely due to revenue increases. Revenues rose $200 billion and spending decreased only $11 billion.

Individual income tax and social insurance payroll taxes are up 16 percent this year compared to last year.

In January, Congress and the White House agreed to allow income taxes on those making more than $400,000 per year to rise and to end a 2-percentage point payroll tax holiday for all workers.

That has contributed to $132 billion more in income taxes and $52 billion more in payroll tax revenue, CBO estimated.
On the spending side, major discretionary items like defense saw notable decreases, but the mandatory entitlement programs continued their relentless march upward in cost.

Whereas defense spending has fallen by $20 billion, spending increased by $25 billion for Social Security and $15 billion for Medicare as the baby boomer generation ages into retirement.

CLICK ABOVE LINK FOR THE REST...


3 posted on 05/11/2013 10:04:33 AM PDT by SeekAndFind
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To: SeekAndFind

*sigh* Talking points in the making. Reducing our budget deficit, while nice, means absolutely nothing in regards to our debt, and less than nothing in regards to our unfunded liabilities.

This means precisely nothing.


4 posted on 05/11/2013 10:04:43 AM PDT by TheZMan (Buy more ammo.)
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To: SeekAndFind
A major reason: A big jump in tax revenue.

Fewer people working and more people receiving government entitlements. I'm not really sure we should be celebrating this. It sounds like more theft of other people's money might be going on.

5 posted on 05/11/2013 10:06:10 AM PDT by FlingWingFlyer (America is the root cause of violent crime in Mexico. - Barack Hussein Obama Jr.)
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To: SeekAndFind

How many days or weeks before they tell us this was a mistake? Sorry! Some low level govt worker put a decimal in the wrong place...


6 posted on 05/11/2013 10:06:22 AM PDT by uncitizen
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CBO: Are you gonna believe us or your own lyin’ eyes?


7 posted on 05/11/2013 10:08:35 AM PDT by Ouchthatonehurt ("When you're going through hell, keep going." - Sir Winston Churchill)
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To: SeekAndFind

Translation: Even with the Sequester cuts and massive tax increases, we are still on track to spend nearly a trillion more than we are taking in this year on top of the $16 trillion dollars in debt that our country is in and $80 trillion dollars in unfunded liabilities.

Whoopi!


8 posted on 05/11/2013 10:08:36 AM PDT by icwhatudo (Low taxes and less spending in Sodom and Gomorrah is not my idea of a conservative victory)
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To: FlingWingFlyer

I’m not sure you read the story correctly.


9 posted on 05/11/2013 10:11:19 AM PDT by babble-on
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To: SeekAndFind

In 2005, under Bush administration, there was a huge infilux of cash into the budget because tax cuts kicked in and economy grew at robust rates. This current trend is temporay, because of higher taxes the economy will go down and budget deficits will start to grow again.


10 posted on 05/11/2013 10:11:24 AM PDT by Mi-kha-el ((There is no Pravda in Izvestiya and no Izvestiya in Pravda.))
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To: icwhatudo

Sounds like the deficit for the year could fall to about $650 billion — just a wild guess.


11 posted on 05/11/2013 10:14:45 AM PDT by WashingtonSource
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To: FlingWingFlyer
...It sounds like more theft of other people's money might be going on.

Whoever said 'crime doesn't pay' didn't work for the taxman.

My paycheck is supporting my family and how many others who leach off my hard earned money? There's barely anything left to pay bills after Uncle Sugar steals his share.

12 posted on 05/11/2013 10:24:54 AM PDT by 444Flyer
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks SeekAndFind.
A major reason: A big jump in tax revenue. Tax collections rose by $220 billion... Individual and payroll taxes accounted for $184 billion of that increase... Spending, meanwhile, fell 1.9% year over year, the CBO estimated.

13 posted on 05/11/2013 10:28:13 AM PDT by SunkenCiv (Romney would have been worse, if you're a dumb ass.)
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To: SeekAndFind

Take more money out of the Oconomy by raising taxes and tax revenues go up.

Who woulda’ thought?


14 posted on 05/11/2013 10:43:39 AM PDT by Iron Munro (Obama-Ville - Land of The Freebies, Home of the Enslaved)
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To: Iron Munro

Probably only a 32% reduction if the didn’t have to pay the inteerst back. We know how the supreme lar in chief spins things, if you decieve the people usin spin it’s still a lie and dishonest.


15 posted on 05/11/2013 11:12:29 AM PDT by jsanders2001
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To: FlingWingFlyer; TheZMan

Neither of you read, or grasped, the article.

Try again.


16 posted on 05/11/2013 11:13:44 AM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: TheZMan

A lot of the big jump in income is special dividends by companies trying to beat a possible jump in the dividend tax rate from 15% to 43 %.

Although the tax never happened, many companies jumped their dividends to the last part of 2012.

On a personal level, I took about 100K of cap gains in 2012 just in case the cap gains tax jump. This was a one time event for me as I sold stock I held a long time and bought it back the next day (the wash sale rule applies only to losses, not to gains.)


17 posted on 05/11/2013 11:47:10 AM PDT by staytrue
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To: SeekAndFind

Did certainty replace uncertainty?


18 posted on 05/11/2013 12:44:21 PM PDT by VRW Conspirator (Cyprus - the beginning)
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To: FlingWingFlyer

For as long as we are shipping US jobs to China and buying a bunch of imports, we will run a deficit and our children will be suffering.

Bring back US jobs, and stop importing everything.

Now.


19 posted on 05/11/2013 12:47:54 PM PDT by Cringing Negativism Network
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To: SeekAndFind

Sounds like the GOP’s “obstruction” to cut back on Obama’s spending is starting to have a effect.


20 posted on 05/11/2013 12:50:31 PM PDT by TwelveOfTwenty (Ho, ho, hey, hey, I'm BUYcotting Chick-Fil-A)
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To: Cringing Negativism Network

Doesn’t work that way, sorry. We can have a trade deficit, and our government can still spend money it doesn’t have.


21 posted on 05/11/2013 12:57:30 PM PDT by 1rudeboy
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To: TwelveOfTwenty

RE: Sounds like the GOP’s “obstruction” to cut back on Obama’s spending is starting to have a effect.

The liberal explanation is Obama’s tax hikes on the wealthy has started to take effect.


22 posted on 05/11/2013 12:59:28 PM PDT by SeekAndFind
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To: staytrue

Ding, ding, ding! We have a winner!


23 posted on 05/11/2013 2:42:08 PM PDT by griswold3
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To: Cringing Negativism Network
For as long as we are shipping US jobs to China and buying a bunch of imports, we will run a deficit and our children will be suffering.

In FY 2007, the budget deficit was $160 billion, while the trade deficit in 2007 was $696 billion

The FY 2012 budget deficit was $1086 billion while the 2012 trade deficit was $540 billion.

Is that the relationship you felt they should have?

24 posted on 05/11/2013 4:26:21 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: SeekAndFind

What’s a few hundred billion when it’s been running in the trillions for years.


25 posted on 05/11/2013 4:31:41 PM PDT by Eleutheria5 (End the occupation. Annex today.)
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To: FReepers; Patriots; FRiends







It's vitally important to Keep FR Alive.
ALL Contributions are for "THIS" Quarter's Expenses!
PLEASE MAKE YOUR DONATION TONIGHT!

26 posted on 05/11/2013 4:56:50 PM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
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To: Cringing Negativism Network

Still allergic to facts, I see.
Maybe you can buy some cheap imported ones?


27 posted on 05/12/2013 9:33:43 AM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot

Our budget is in constant deficit.

Companies source more and more, from Chinese workers. Whose work benefits one government:

China.

Bring back American jobs now.


28 posted on 05/12/2013 9:36:29 AM PDT by Cringing Negativism Network
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To: Cringing Negativism Network
Our budget is in constant deficit.

Because government spends way too much. How is doubling the cost of oil, and crushing our economy, going to fix that?

Companies source more and more, from Chinese workers.

I wonder if cutting our highest in the world corporate tax rates as well as some of our idiotic regulations (Obamacare anyone?) would make domestic sources more viable?

29 posted on 05/12/2013 9:42:51 AM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot

You do not get it.

China is soaking up money and trade. Chinese trade laws are extremely one-sided, requiring local content and more importantly, ensuring a one-way flow of ever more money into the country by requiring goods be made in China with a majority ownership also, Chinese.

The cost difference was so great, that a huge number of American firms sold out, and now a majority of our “goods” are cheap imports.

More all the time.

It is time to push back.

Bring American goods home, and stop importing so much.

Now.


30 posted on 05/12/2013 9:46:28 AM PDT by Cringing Negativism Network
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To: Cringing Negativism Network
You do not get it.

I do get it. You want to give the government more power and more control, I want the opposite.

and now a majority of our “goods” are cheap imports.

More than 50%? You need to buy some math, your math is lacking.

Bring American goods home, and stop importing so much.

By reducing government interference, not by doubling the cost of oil.

End your economic idiocy.

Now.

31 posted on 05/12/2013 9:50:56 AM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Cringing Negativism Network

Either way one might choose to paint the picture...the US is being stripped of it’s resources by other nations and leaderships in these trade deals....be it people, companies, and talent being shipped out to other nations....and if they can’t or won’t leave leave then those nations come here, buy them up, and put them under their roof.


32 posted on 05/12/2013 9:51:07 AM PDT by caww
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To: Toddsterpatriot

Buy American.


33 posted on 05/12/2013 9:52:19 AM PDT by Cringing Negativism Network
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To: Cringing Negativism Network
Tell me again how a 100% tariff on foreign oil will leave the price of American oil unchanged.

Buy an American education in economics. You can start cheaply by reading Sowell and Williams.

34 posted on 05/12/2013 9:56:13 AM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot

I am not talking about oil, though that is a valid criticism.

I am talking about bringing back American manufacturing.

More. And more, “American” companies make all their things in China. In effect becoming Chinese companies.

We need our own businesses again.

We need taxation on imports, we need to perhaps even do something to require local content.

We have been on the wrong side of “free trade”.

It is time for us to look out for America, and American businesses.

Not slum for American companies, which make money by sending jobs overseas.

American jobs.


35 posted on 05/12/2013 10:02:25 AM PDT by Cringing Negativism Network
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To: Cringing Negativism Network
I am not talking about oil,

Glad you realized the idiocy of your original tariff idea.

More. And more, “American” companies make all their things in China. In effect becoming Chinese companies.

You said more than 50% of our stuff is imported.

You don't help your cause when you make ridiculously inaccurate claims.

It is time for us to look out for America, and American businesses.

I agree. But your fix of ever bigger, more intrusive government is wrong. Wrong, wrong, wrong.

36 posted on 05/12/2013 10:06:21 AM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot

Well we just flat-out disagree.

I do not accept any of your premises. You do not accept mine.

So. We disagree. Emphatically.


37 posted on 05/12/2013 10:08:08 AM PDT by Cringing Negativism Network
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To: Cringing Negativism Network
Yes. I emphatically disagree with your prescription of ever larger and more powerful government.

You disagree with my prescription of smaller, less powerful government.

38 posted on 05/12/2013 10:12:54 AM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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