Deficit Estimated Lowest in 4 Years

[Lubbock]

Deficit Estimated Lowest in 4 Years
By ANDREW TAYLOR, Associated Press Writer

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.

http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2006/08/04/national/w142257D44.DTL&type=politics

LET'S SEE IF AMERICON CAN THROW A 24KARAT SOLID GOLD BUSH BASHING HISSY FIT AT THIS ONE!!!

[DoctorDoom]

... the first deficit following four years of surpluses.Surpluses, my arse. The "surpluses" were the result of the XXX-42 administration including surplus Social Security tax income in the general fund numbers.

[5] The creation of the trust fund surplus also created a political dynamic that continues to haunt us. Remember Al Gore’s famous and widely lampooned declaration that he would put Social Security’s surplus into a “lock box”? He was saying that the federal budget surplus was largely the result of surplus Social Security tax revenues. (Only in the final year of the Clinton administration was there general fund surplus without the use of Social Security revenues. ) Gore promised to guard against politicians raiding the trust fund to pay for current spending or tax cuts. A little guarding would have been quite salutary. As it stands, borrowing to finance current budget deficits severely compound the problem of financing Social Security (and Medicare and other programs).President’s proposal to create personal savings accounts within the SS system (http://www.ilsr.org/newrules/drdave/11-socsec.html)

[ConspiracyBuff]

I knew that would be your response Americon because I saw this thread right after that one.

[Beowulf]

the first deficit following four years of surpluses.
A surplus means that you are overtaxed!