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« Hell in a Handbasket | Main | British Report: We Stand By Niger Uranium Intelligence »
July 14, 2004

June's Surplus Higher Than Expected

Nice:

WASHINGTON, July 13 (Reuters) - The U.S. government posted a larger-than-expected budget surplus in June, propped up by higher quarterly business tax receipts, a government report released on Tuesday showed.

In the Treasury Department's monthly budget statement, June income outpaced spending by $19.14 billion, slightly less than the government's June 2003 surplus of $21.23 billion.

"What we are seeing is the impact of a good economy, the impact of extraordinarily strong corporate profits, and likely the impact of more people being caught in the alternative minimum tax," Drew Matus, financial markets economist at Lehman Brothers in New York, said in response to the report.

"Surprisingly strong receipts are really helping out a great deal here. There is no reason to suspect, given the employment growth we have seen, that this trend will change any time soon," he said.

The June result exceeded Wall Street forecasts of a $16.50 billion surplus, as well as a $16 billion surplus projection from the nonpartisan Congressional Budget Office.

...

Corporate income tax inflows grew 38 percent in June, when quarterly tax statements are normally filed, compared to June 2003. Individual tax receipts were nearly 9 percent higher.

Just in case anyone is confused, this doesn't mean that we're actually in surplus for the year. Some months (like April) feature higher tax receipts, and thus some months show a surplus. We're not out of deficits by a long shot, but this is a nice indicator of the trend.

Hat Tip to See-Dubya.

I think it was William Shakespeare who said:

"Out of this nettle, danger

Pluck this flower, cowbell."


posted by Ace at 02:23 PM
Comments



That's interesting. I understand the point that income is variable, so that a short-term result can't be projected easily over the whole year. What's not entirely clear to me is whether "June income" means "income for the month of June" or "income for the June quarter." The former would be a curiosity, while the latter would be really exciting.

Posted by: Doug on July 15, 2004 08:45 AM
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