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Federal Deficit Decreasing
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| Yoepus |
| quote: |
http://news.yahoo.com/s/ap/20070811...wyEPsKIxDib.HQA
Federal deficit down to $157.3 billion
AP
WASHINGTON - The federal deficit so far this budget year is running sharply lower, driven by record revenues pouring into government coffers.
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The Treasury Department reported on Friday that the government produced a deficit of $157.3 billion for the budget year that began last Oct. 1. That's a substantial improvement from the red ink figure of $239.6 billion produced for the corresponding 10-month period last year.
The lower year-to-date deficit was the result of a record of $2.12 trillion in revenues. Spending, however, was higher — $2.27 trillion, which also marked an all-time high.
The White House predicts that the deficit this year drop to $205 billion.
But the nonpartisan Congressional Budget Office predicts the government will produce even less red ink this year. It recently said the deficit will be "toward the lower end" of a $150 billion to $200 billion range.
Democrats and the Bush administration have been at odds over the nation's fiscal situation. Democrats believe the shrinking deficits won't last. President Bush, meanwhile, has called on the Democratic-controlled Congress to show some restraint in its spending.
So far this budget year, the biggest spending categories are programs from the Health and Human Services Department, including Medicare and Medicaid, $560.2 billion; Social Security, $516.1 billion; military, $437.7 billion, and interest on the public debt, $385.1 billion.
For July, the government produced a deficit of $36.3 billion, up from $33.2 billion for the same month last year.
Revenues in July came to $170.4 billion, while spending outpaced that at $206.8 billion. Both revenue and spending were records for the month. |
Hmmm... ;)
Good news afterall, perhaps democrats should stay away from changing over taxing... especially messing with the capital gains tax. |
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| Arbiter |
| For some reason, I have difficulty getting excited about falling further behind at a marginally slower rate. |
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| Spirit5 |
| Well the stock market is not doing so well..noteably the Dow....hmmm and the deficit is decreasing? I have thought that there would be less money going into the government with Bush's tax cuts, as well as all the money we have spent in Iraq. Most of the money we are getting is from China, Japan and a few other countries. There is still a large trade deficit..we still owe them a lot of $$$. |
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| spiflicated |
| quote: | Originally posted by Yoepus
Hmmm... ;)
Good news afterall, perhaps democrats should stay away from changing over taxing... especially messing with the capital gains tax. |
and I thought the point of raising taxes was to pay for those couple of billion dollars that are being spent for which there is NO revenue |
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| cronodevir |
| Welcome to capitalism. And more specificly, the use of usery. |
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| venomX |
| How is this a good thing? This hasn't come to be due to anything the administration has made. The only reason there is a decrease in the deficit is from record income. If you read what you posted there was also record spending. So no real decrease has happened in spending, which is what is driving the deficit to begin with. |
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| Q5echo |
| quote: | Originally posted by venomX
The only reason there is a decrease in the deficit is from record income. |
and Federal revenue has little to do with Federal taxes, right? |
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| venomX |
| quote: | Originally posted by Q5echo
and Federal revenue has little to do with Federal taxes, right? |
There are 2 ways to decrease the deficit. One is to increase revenue, which is something like what happened. The other is to decrease spending, which has not happened. The best alternative is to do both at the same time. My point was that the increase in revenue was not due to any policy implemented by this administration, it has been circumstance. Therefore, there is not much to celebrate, because the government hasn't really done anything to improve the condition of the deficit. |
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| Yoepus |
The Federal government under Bush increased revenues by decreasing taxes, this is important to note - as it is a substantiates economic theory.
Spending increased, and no one likes that - but right now the House who controls most spending legislation is in the hands of democrats...
Regardless most Federal spending is on four things: Defense, Health, Social Security, and paying down debt. And no one has offered any new ideas on how to change spending in those fields. |
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| Q5echo |
| quote: | Originally posted by venomX
There are 2 ways to decrease the deficit. |
right it's simple math.
| quote: | | One is to increase revenue, which is something like what happened. |
that's exactly what happened.
| quote: | | My point was that the increase in revenue was not due to any policy implemented by this administration, it has been circumstance. |
that's where you are wrong.
you raise taxes/revenue by cutting the marginal rate of taxation, not by increasing it.
though not completely constrained to that fact, if you want to talk about direct corrolations, only one person and roomful of Legislators was responsible for it. |
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| occrider |
| quote: | Originally posted by Q5echo
you raise taxes/revenue by cutting the marginal rate of taxation, not by increasing it.
though not completely constrained to that fact, if you want to talk about direct corrolations, only one person and roomful of Legislators was responsible for it. |
What? Heh please elaborate such that it's applicable to the current economic situation. |
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| Trancer-X |
| quote: | Originally posted by Yoepus
Hmmm... ;)
Good news afterall, perhaps democrats should stay away from changing over taxing... especially messing with the capital gains tax. |
Don't delude yourself. |
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