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Deficit Surprise: US Pays Down National Debt
ABC News ^ | 05/19/2013 | Richard Davies

Posted on 05/19/2013 5:18:06 PM PDT by SeekAndFind

For the first time since 2007 – before the recession – the US Treasury is planning to make a down payment on the federal debt. The budget deficit has been shrinking more than expected. Thanks to government spending cuts, and higher tax receipts The Treasury says it expects to pay off $35 billion of debt in the second quarter. That compares to an earlier forecast that it would have to borrow $103 billion.

Usually this time of year is the best for government cash flow because annual tax returns flood into the Treasury in April. But the return to at least one quarter of debt paydown is a clear sign government spending cuts and tax increases have helped lower the deficit.

(Excerpt) Read more at abcnews.go.com ...


TOPICS: Business/Economy; Culture/Society; Front Page News; Government; News/Current Events
KEYWORDS: bs; budgetdeficit; debt
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1 posted on 05/19/2013 5:18:06 PM PDT by SeekAndFind
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To: SeekAndFind

Riiight. And at the same time Obama’s asking for another debt limit increase!


2 posted on 05/19/2013 5:20:22 PM PDT by Jim Robinson (Resistance to tyrants is obedience to God!!)
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To: SeekAndFind

Un huh.


3 posted on 05/19/2013 5:20:23 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: SeekAndFind

40 million U. S. workers idle, many of them getting government benefits of some sort, and we’re paying down the debt?

I’m not sure what medication they’re passing out in D. C., but it must be a long acting gigantic pill.


4 posted on 05/19/2013 5:20:52 PM PDT by DoughtyOne (Funny thing happened on the way to the Constitution burning, Lefties rights were violated...)
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To: SeekAndFind

So how does this work? The Treasury prints a bunch of money and pays themselves back?


5 posted on 05/19/2013 5:21:40 PM PDT by FlingWingFlyer (If you think ObamaCare is a train wreck, wait until you see the amnesty bill.)
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To: SeekAndFind

Btw, what government spending cuts? They haven’t cut a dime.


6 posted on 05/19/2013 5:22:18 PM PDT by Jim Robinson (Resistance to tyrants is obedience to God!!)
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To: SeekAndFind

So.... We are still increasing total debt by ~$1 trillion annually, but we made a $35 billion principle payment. Therefore, “we are paying down the debt.”

My God, people must be stupid.


7 posted on 05/19/2013 5:24:31 PM PDT by SampleMan (Feral Humans are the refuse of socialism.)
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To: SeekAndFind
But the return to at least one quarter of debt paydown is a clear sign government spending cuts and tax increases have helped lower the deficit.

No it doesn't.

All it means is that a lot of income like cap gains and dividends were accelerated into 2012 to avoid a possible large tax increase that might have happened in 2013.

The 2nd quarter tax receipts reflect 2012 income for april 15. Also estimated taxes for people who file quarterly are based on 2012 income so those are higher even though they are likely overpaying due to income getting moved from quarter 1 of 2013 to quarter 4 of 2012

8 posted on 05/19/2013 5:26:15 PM PDT by staytrue
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To: Jim Robinson
Btw, what government spending cuts? They haven’t cut a dime.

Don't tell the military that. The ships are at the pier and the planes are on the ground. No entitlements got cut, of course, but the military is suffering.

9 posted on 05/19/2013 5:26:58 PM PDT by Pan_Yan (I believe in God. All else is dubious.)
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To: DoughtyOne

“...it must be a long acting gigantic pill.”

A suppository, actually. And, it’s for us, not them. These hallucinations they are having is from the ganja in the WH.


10 posted on 05/19/2013 5:27:54 PM PDT by PubliusMM (RKBA; a matter of fact, not opinion. 01-20-2016; I pray we make it that long.)
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To: staytrue
All it means is that a lot of income like cap gains and dividends were accelerated into 2012 to avoid a possible large tax increase that might have happened in 2013.

I'm sure there are armies of tax attorneys trying to figure out the best position to be in when ObamaCaraMageddon strikes in January.

11 posted on 05/19/2013 5:28:32 PM PDT by Pan_Yan (I believe in God. All else is dubious.)
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To: PubliusMM

LOL


12 posted on 05/19/2013 5:29:22 PM PDT by DoughtyOne (Funny thing happened on the way to the Constitution burning, Lefties rights were violated...)
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To: Jim Robinson

It is “a cut from the increase.”


13 posted on 05/19/2013 5:30:31 PM PDT by Wyrd bi ful ard (Gone Galt, 11/07/12----No king but Christ! Don't tread on me!)
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To: SeekAndFind

On a personal note, I accelerated 100k of cap gains into December of 2012.

My income for 2013 will likely show about a 150,000 drop from 2012 with only 30,000 drop from business falling off while 120,000 fall is due to tax planning.


14 posted on 05/19/2013 5:30:35 PM PDT by staytrue
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To: SeekAndFind

That is like saying I am only drinking 5 beers/day instead of 6...so I am alcohol free!


15 posted on 05/19/2013 5:35:47 PM PDT by entropy12 (Even tho Obama is now a lame duck, with 2014 House majority, he will be a dangerously socialist!)
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To: SeekAndFind
Obama can’t prove that he has had any math training let alone Economics.
16 posted on 05/19/2013 5:36:32 PM PDT by mountainlion (Live well for those that did not make it back.)
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To: SeekAndFind

Projected debt maybe??


17 posted on 05/19/2013 5:41:42 PM PDT by Forrestfire (("To educate a man in mind and not in morals is to educate a menace to society." Theodore Roosevelt))
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To: SeekAndFind

I blame the Sequester.


18 posted on 05/19/2013 5:46:03 PM PDT by NoLibZone (None here can be puzzled by why Jews walked into the cars so quietly- we are walking up the planks.)
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To: SeekAndFind
yeah, right...

19 posted on 05/19/2013 5:47:28 PM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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To: SeekAndFind
Wow. Such a “feel good” report. On top of all the other lies.
20 posted on 05/19/2013 5:50:16 PM PDT by unixfox (Abolish Slavery, Repeal The 16th Amendment!)
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