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« New Blogroll Additions: A Ginormous Update | Main | Cynical Nation Scoops the Major Media »
September 07, 2004

Economy Grows, Budget Deficit Falls

Via Drudge:

In the headlines this afternoon, the Congressional Budget Office will project that this year's U.S. budget deficit will be smaller than expected. The nonpartisan CBO is expected to say that the deficit will reach $422 billion.

While that is a record, it is down from the $477 billion estimated for the year in January. The estimated revision is largely attributed to stronger revenue collections. The government is expected to spend $2.3 trillion before the fiscal year ends Sept. 30, which translates into borrowing one out of every five dollars it spends.

No cowbell, because that deficit is still much too high. But certainly it's a good sign that "stronger revenue collections" (seems to be a way to say "a better economy" without actually saying it) are reducing it.



posted by Ace at 02:41 PM
Comments



Come on..the masses want cowbell!!

Posted by: RS on September 7, 2004 03:00 PM

Ace, I saw elsewhere today (sorry, can't recall where) that, adjusted for inflation, this is just the fourth highest deficit ever recorded. "Just the fourth highest, you say?" Well, the three highest were all recorded during the early 1940s.

Question for the liberals out there who've decided it makes sense to be deficit-hawks, at least for this election cycle: what does 2004 have in common with 1944?

Posted by: Rocketeer on September 7, 2004 03:03 PM

Here is the post for inflation adjusted deficits.

Just your friendly neighborhood Random "ass" Birkel dropping the 411.

Thanks for adding me to the blog roll.

Posted by: Birkel on September 7, 2004 03:52 PM

Thanks, B. Hate it when I can't give credit where it's due. Blame it on the volume of blogs I visit daily.

Posted by: Rocketeer on September 7, 2004 03:56 PM

Hmmmm. Higher tax REVENUES come after lowering tax RATES. I'm sure there is something significant in that, but I just can't put my finger on it. I hope the next resturant I stop only has one thing on the menu so I don't have to think too hard there either.

Posted by: John Kerry on September 7, 2004 08:07 PM

$477 might have been the official estimate, but the punditocracy was POUNDING estimates closer to $700 B around the time of last years budget.

$700 - $420 = Wow.

Posted by: Al on September 7, 2004 09:15 PM

Political Economy 101: If you want to reduce the prevalence of something, tax it at a higher rate. Example, cigarette smoking. Conversely, if you decrease the rate of tax on something, it will increase. Example, taxable income.

Math-impaired warning: higher mathematics follows.

Income tax revenue is the product of taxable income and tax rate. Should one factor increase faster than the other decreases, the product will increase. QED

Obviously this high level of mathematics is totally beyond the English, Journalism, Environmental Studies, Womyn's Studies, etc. majors that populate the Democratic Party.

Posted by: Dean Douthat on September 8, 2004 09:58 AM

ycodymao expiud.

Posted by: Bridget on December 28, 2004 04:31 PM

aeootit aoskhwb.

Posted by: Ellen on December 28, 2004 04:55 PM

gobeweea pwokpkxy.

Posted by: Aaron on December 28, 2004 05:05 PM
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