Posted on 07/07/2005 3:41:41 PM PDT by Skylab
U.S. Budget Deficit Tumbles, Congressional Analysts Say
By Andrew Taylor Associated Press Writer Published: Jul 7, 2005
WASHINGTON (AP) - Higher-than-expected tax receipts and the steadily growing economy have combined to produce an improved picture for the federal budget deficit, congressional analysts say.
The deficit for the current budget year, which runs through Sept. 30, should be "significantly less than $350 billion, perhaps below $325 billion," according to the Congressional Budget Office. The agency produces nonpartisan estimates for Congress and will put out a full update Aug. 15.
Thursday's new figures come as the White House is to release its midyear budget review July 13. Administration figures are also expected to show significant improvement from the $427 billion current-year deficit it predicted in January.
The biggest factors for the improving deficit picture are higher tax receipts from corporations and individuals. The economy is performing slightly above earlier administration expectations. Despite the improvement projected over the short term, neither the CBO nor the administration's Office of Management and Budget is expected to dramatically overhaul its long-term deficit projections, which show a steady decline in the level of red ink through the end of the decade but anticipate a spike in the deficit soon thereafter as the baby boom generation claims its retirement benefits.
"This is good, but let's try to figure out if there's anything permanent here," said CBO Director Douglas Holtz-Eakin.
Still, the new numbers will make it easier for the White House to credibly claim it will meet its goal of cutting the deficit in half - from the $521 billion it originally predicted for fiscal 2004 - by the time President Bush leaves office. Budget watchdog groups like the bipartisan Concord Coalition say White House budget projections are suspect since they leave out long-term costs for the war in Iraq and other factors.
"The numbers are coming out better," said White House budget director Joshua B. Bolten in an interview last month. "We had projected a very steady path of decline of the deficit, especially as a percentage of GDP, which is the right way to judge it. Right now, we're doing better than hitting that target. They'll be better because we've gotten better revenues than we originally projected."
As it addresses the deficit, the White House has focused chiefly on clamping down on domestic programs whose budgets are appropriated every year by Congress. That's only about one-sixth of the overall budget, however. Congress is also planning a five-year, $35 billion cut from automatically budgeted programs such as Medicaid and farm subsidies.
"The long-term budget issues are the mandatory programs - Social Security, Medicare, Medicaid. Everything else is dwarfed by that," Holtz-Eakin said. He added that the current improvement in the deficit picture "looks like a pittance" when compared with the long-term liabilities.
AP-ES-07-07-05 1754EDT
Just as we have great leverage over the many nations that owe us money. Africa and South America come to mind quite easily.
In my younger days, I spent some time as bill collector. The slow payers would say, "Hey! You better be nice, I owe you money."
"This cannot be repeated enough because most people don't grasp it the first twenty times."
economists say the more significant measure is against the size of the economy.
economists say the more significant measure is against the size of the economy.
[repeat, repeat....]
"I also have to keep repeating to everyone that you have to put things in relation to the size of the economy. Same with increases in government size honestly."
Maybe so, but it never hurts to clamp down on domestic spending.
No matter how often you repeat a lie, Arthur, it's not going to make it true.
Comparing the budget deficit to GDP is mixing apples and oranges.
The budget deficit is a accounting measurement of government's fiscal irresponsibility, NOT a measure of our nation's overall economic health. It is grossly misleading to compare these figures since it completely ignores the amount of debt already accrued by the government, not to mention all the state, local and private sector debt that must also be serviced by our economy.
So you can "repeat, repeat, repeat...." all you want, Arthur"
All that does is make you a shill for the irresponsible Big Government spendthrifts who squander taxpayer dollars.
"I am one of those who do not believe that a national debt is a national blessing, but rather a curse to a republic; inasmuch as it is calculated to raise around the administration a moneyed aristocracy dangerous to the liberties of the country."-- President Andrew Jackson - (1824)
But you're not opposed to spending it offshore, are you?
Anything goes to prop up the Third World by sacrificing the American Middle Class?
Unfortunately it is not limited to just the average european. Our MSM has an easy time manipulating our home grown ignorami into thinking we have a huge problem.
Life is good.
The claim that the government needs to go into debt or overspend in order to prevent anarchy isn't logical. It sounds like something a big government Democrat would say.
Love your tagline and your theory about government and taxes.
How is spending doing? Taxes are up but is spending down? I mean we have a GOV government so spending is down big time right?
And it was, there was a budget surplus at the end of the Clinton years.
What did they do with the surplus?
It really is, and I'm cautiously optimistic in the belief that more and more people are coming around to this fact. Sure self pity, depression, and covetousness are seductive emotions, but they're also extremely self destructive. I'm afraid we live in a world where "survival of the happy" is law.
You must be aware that anarchy exists when governments don't and that anarchy is bad. You've also got to know that for thousands of years governments in crisis have borrowed money as necessary for survival. I don't know what you're missing.
Bookmark...
Did they stick it in their pocket when the left?
They stored it in the basement of the World Trade Center.
"But you're not opposed to spending it offshore, are you?
Anything goes to prop up the Third World by sacrificing the American Middle Class?"
[Steam rolling out of ears, nostrils, and mouth.] Charity comes from the heart, NOT from the IRS! HOW DARE THEY give away other peoples' money! If I want to give them money, if you want to give them money, FINE! Do it. Knock yourself out! Leave other peoples' money alone.
Don't fall for this numbers "shell game". As usual, our Congress and their agents are wildly spinning the truth to make themselves look better and not appear to be the irresponsible fiscal profligates that they are. Go to G.A.O. and read the whole (albeit unpleasant) truth.
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