8.04.2006

Good news about the deficit? *GASP*

Say it ain't so!!!


"Even with the extraordinary circumstances of the past year — including Hurricane Katrina and the ongoing War on Terror — we're seeing the deficit fall," said House Budget Committee Chairman Jim Nussle, R-Iowa. "Thanks to pro-growth policies and a responsible budget blueprint, we're on the right track, but we've got to remain diligent."

Democrats said a $260 billion deficit is nothing to crow about.

"The deficit for this year will be the sixth largest in history, and will stand a long way from the $236 billion surplus recorded in 2000, the last year of the Clinton Administration," said top House Budget Committee Democrat John Spratt Jr. of South Carolina.



Hmm...is the glass half empty or half full? I guess it depends on how you look at it.




Pau.





- hfs

1 comment:

Woody said...

Budget Deficit; Deficit Estimated Lowest in 4 Years
By ANDREW TAYLOR
Associated Press Writer
507 words
4 August 2006
21:55
Associated Press Newswires (APHO)
English
(c) 2006. The Associated Press. All Rights Reserved.
WASHINGTON (AP) - The federal deficit will register $260 billion this year, the lowest in four years, reflecting a strong economy and resulting growth in tax revenue, congressional analysts said Friday.
The estimate by the nonpartisan Congressional Budget Office is well below its earlier predictions and also below the $296 billion White House estimate less than a month ago.
Better-than-expected revenues are driving the deficit down from last year's $318 billion figure and far below the record $413 billion posted in 2004.
At $260 billion, it would be the lowest since the $158 billion figure in 2002, the first deficit following four years of surpluses.
The deficit picture is even better when measured against the size of the economy, which is the comparison economists think is most important.
"At 2 percent of gross domestic product, the 2006 deficit would be smaller than the deficit recorded in the past three years -- 3.5 percent in 2003, 3.6 percent in 2004 and 2.6 percent in 2005," said the CBO report.
So far this year, taxes on corporate profits are 27 percent or $56 billion higher compared to the first 10 months of last year. That reflects the strong economy. All told, receipts from corporate profits are estimated to tally two and a half times those collected in 2003, CBO said.
The budget year ends Sept. 30.
Receipts are also 20 percent higher on income and payroll taxes paid quarterly by wealthier people and small businessmen but taxes withheld in paychecks are only 8 percent higher. Tax receipts are estimated to run $223 billion higher than 2005, CBO said.
The CBO estimate continues a positive trend on the deficit after a grim deficit performance during President Bush's first term.
Republicans credited GOP fiscal policies centered on tax cuts passed in 2001 and 2003 and a clampdown on domestic agencies funded by Congress each year. Were it not for the war in Iraq and ongoing hurricane relief costs, the deficit would be far lower.
"Even with the extraordinary circumstances of the past year -- including Hurricane Katrina and the ongoing War on Terror -- we're seeing the deficit fall," said House Budget Committee Chairman Jim Nussle, R-Iowa. "Thanks to pro-growth policies and a responsible budget blueprint, we're on the right track, but we've got to remain diligent."
Democrats said a $260 billion deficit is nothing to crow about.
"The deficit for this year will be the sixth largest in history, and will stand a long way from the $236 billion surplus recorded in 2000, the last year of the Clinton Administration," said top House Budget Committee Democrat John Spratt Jr. of South Carolina.
The Bush White House has gained a reputation for overstating deficit figures early in the year in order to report better news later. In February, the White House predicted a $423 billion deficit for the current year.
------
On the Web: http://www.cbo.gov
7 | 20060805budgetdeficit
Document APHO000020060805e285000ug
========================================