Federal Deficit Likely to Narrow By $100 Billion

Washington Post ^ | May 4, 2004 | Jonathan Weisman

[FairOpinion]

Smaller-than-expected tax refunds and rising individual tax receipts will pare back federal borrowing significantly for the first half of this year and could reduce the $521 billion deficit projected for the fiscal year by as much as $100 billion, Treasury and congressional budget officials said yesterday.

The Treasury Department's borrowing estimates may prove to be more good news for President Bush on the economic front, as opponents attempt to make his fiscal stewardship a campaign issue. The $184 billion the government is now expected to borrow through June is a 27 percent improvement from Treasury's February projection of $252 billion, the department said.

All of this indicates that the improving economy is beginning to slow a three-year slide in overall tax receipts.

"The 5.5 percent average [economic growth] pace in the latest three quarters was the largest since 1984," said Mark J. Warshawsky, assistant Treasury secretary for economic policy, in a statement to the department's borrowing advisory committee. "With the assistance of tax cuts, growth has become self-sustaining."

[FairOpinion]

Bush and supply-side economists are right. Cutting taxes restarted the economy and a growing economy results in more tax revenue and lower deficit. That's what happened, when Reagan cut taxes -- it started a prolonged economic growth cycle.

And, all together now: Daschle (and Kerry) are deeply saddened. ;)

[xrp]

This is all Bush's fault!

[RWR8189]

So the deficit will remain less than 4% of GDP, which is historically low, but Kerry will still complain that its the largest deficit in the history of the world.

[CyberAnt]

Now this is GREAT NEWS!!

It takes away another issue for the dems: deficit!

[Jim Robinson]

You got that right!

[republicanwizard]

If it continues at this rate, Bush will hae a surplus by the end of his second term. So much for the worry-warts who have argued that we will have deficits as far "as the eye can see."

[Hank Rearden]

Smaller-than-expected tax refunds and rising individual tax receipts will pare back federal borrowing

No spending cuts - the Big Stupid Government parasite bastards are just stealing more money from real people.

[timydnuc]

The left actually stopped, and abruptly stopped, the attack on the economy about 2 weeks ago. The face of the economic "recovery" was so strong that they had to go to plan "F" ( they are working their way down the alphabet) to attacks on the war, and Medicare. Bit by bit they have been defeated by a President that has his s#$t together.

We are seeing sedition in the press and the democratic party. They will stop at nothing to make death tolls rise in Iraq, just to make political hay. What is good for our Country and our troops is bad for them. The vermin have sold out their our county, and it's brave defenders for political power. Are they traitors? You answer that, I already have.

[Tamzee]

Per National Review...

http://www.nationalreview.com/nrof_buzzcharts/buzzcharts200404300829.asp

[rebel_yell2]

Indeed, just as we went from surpluses "as far as the eye can see" back in 1998 to deficits "as far as the eye can see" in 2003, we are now swinging back towards surpluses as the economy revs up, generating copious new tax revenues. My bet is that the FY2003 deficit will be even smaller than this article intimates.

[Texasforever]

If the truth is ever told, there was NEVER a 6 trillion dollar surplus. However GW embraced the figure to cut taxes 6 trillion.

[onyx]

Is that right?
Makes sense to me.

[Texasforever]

Well you tell me, we have a 2 trillion dollar budget. Over 3 years that equals 6 trillion give or take. Now if the deficit is 500 billion after 3 years, why don't we still have a 5.5 trillion dollar surplus?

[onyx]

I like your math.
And your mind.

[timydnuc]

The left actually stopped, and abruptly stopped, the attack on the economy about 2 weeks ago. The face of the economic "recovery" was so strong that they had to go to plan "F" ( they are working their way down the alphabet) to attacks on the war, and Medicare. Bit by bit they have been defeated by a President that has his s#$t together.

We are seeing sedition in the press and the democratic party. They will stop at nothing to make death tolls rise in Iraq, just to make political hay. What is good for our country and our troops is bad for them. The vermin have sold out their own county, and it's brave defenders for political power. Are they traitors? You answer that, I already have.

Note to you traitors: Go to the EU, go to the UN, just get the f$^k out of MY country, it means everything to me. I won't kneel to you, I am a free man. I won't succumb to your ideals, I have my own, and I will die before I fore sake them. You can't take my soul, and by the grace of God and the Constitution of these here United States you won't take my liberty. Before you get your panties in a bunch, remember....I am armed and I don't plan to give up my right under the 2nd Amendment, nor do many, many Americans. That little "clause" that affords men the right to armed insurrection against tyranny, that pesky 2nd Amendment, that fearful weapon of free people. When the tyranny of power in the hands of the unworthy superseed the rights of the People it becomes the only way to save the Republic, and it was put there for that singular purpose. The 2nd Amendment is NOT about hunting, it's about liberty, and it's preservastion, pure and simple.

The left has a serious problem, it's the Constitution...all of it!

[Kate of Spice Island]

I am wondering how Kerry is going to flippity-flop around this to make it look like he HELPED!

[bpjam]

Good news in the economy. Just another in a long line of reasons why it sucks to be John Kerry.

And since when did CBO EVER (repeat, EVER) correctly predict a surplus/deficit number correctly? I can't think of an instance in the past 15 years that I've been paying attention. The surpluses come faster than expected and so do the deficits, which seems to mean that the green eye shade guys can't see the train coming at them or the tunnel they drive themselves into.

[FreedomFlynnie]

That graph can't be right. It seems to indicate that federal receipts in the first half of FY 2004 would total 850 trillion dollars, or about 80 times GDP.

[EQAndyBuzz]

"No spending cuts - the Big Stupid Government parasite bastards are just stealing more money from real people."

Ahh, No.

[jackbill]

That graph can't be right. It seems to indicate that federal receipts in the first half of FY 2004 would total 850 trillion dollars, or about 80 times GDP.

Close enough for government work.