Psst, the Deficit’s Shrinking

cant wait to see the awesome anti-bush/insanely liberal/democratic excuse for this one

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'To the natural style'
 
for the lazies

Here’s one story you won’t find on tomorrow’s front pages: “The U.S. Budget Deficit Is Shrinking Rapidly.� The headline would be accurate, but the mainstream media is much more interested in talking down this booming economy than telling it like it is.

This week’s Treasury report on the nation’s finances for December shows a year-to-date fiscal 2005 deficit that is already $11 billion less than last year’s. In the first three months of the fiscal year that began last October, cash outlays by the federal government increased by 6.1 percent while tax collections grew by 10.5 percent. When more money comes in than goes out, the deficit shrinks.

At this pace, the 2005 deficit is on track to drop to $355 billion from $413 billion in fiscal year 2004. As a fraction of projected gross domestic product, the new-year deficit will descend to 2.9 percent compared with last year’s deficit share of 3.6 percent.

Wire reports are loaded these days with accounts of an expanded trade gap (driven mostly by slower exports to stagnant European and Japanese economies, along with higher oil imports from the peak in energy prices). But there’s not a single report I can find that mentions the sizable narrowing in U.S. fiscal accounts. Behind this really big budget story is the even-bigger story: The explosion in tax revenues has been prompted by the tax-cut-led economic growth of the past eighteen months.

With 50 percent cash-bonus expensing for the purchase of plant and equipment, productivity-driven corporate profits ranging around 20 percent have generated a 45 percent rise in business taxes. At lower income-tax rates, employment gains of roughly 2.5 million are throwing off more than 6 percent in payroll-tax receipts. Personal tax revenues are rising at a near 9 percent pace.

Meanwhile, in the wake of strong stock market advances over the last two years, non-withheld revenues from individuals — including investor dividends and capital gains that are now taxed at only 15 percent — have jumped by over 14 percent.

Following the Clinton cap-gains tax cut and savings expansion bill of 1997, investment-related tax collections led to bull-market budget surpluses in the pre-9/11 period of 1997-2001. However, despite the flood of new revenues, this year’s federal budget is still overspending. Domestic spending on non-entitlement programs (excluding homeland defense) is rising at a 4.1 percent rate. That’s more than twice the pace of core inflation. But this may be changing.

According to the Washington Post, the Bush budget totals planned for fiscal year 2006 may be essentially unchanged from the totals for fiscal year 2005 (excluding defense and homeland security). According to reporter Jonathan Weisman, the administration’s first really tough budget request (due out next month) “would freeze most spending on agriculture, veterans and science, slash or eliminate dozens of federal programs, and force more costs, from Medicaid to housing, onto state and local governments.�

The rapid growth of federal health care and other entitlements would also be slowed markedly. Though the numbers are not yet available, this sounds a bit like Ronald Reagan’s tax-cutting budget of 1981. In addition to reducing the top personal tax rate to 50 percent from 70 percent, the Gipper proposed budget cuts that would be worth nearly $100 billion in today’s dollars.

Of course, the political screaming over the forthcoming budget has already begun. A passel of Democrats and at least one Republican, Sen. Craig Thomas of Wyoming, have written a protest letter to Josh Bolten, director of the Office of Management and Budget. Former-Gov. John Engler of Michigan, a Republican and the current president of the National Association of Manufacturers, has pledged to fight the elimination of various protectionist subsidies to his member firms.

However, Sen. Judd Gregg, the New Hampshire Republican who is the current chair of the upper chamber’s budget committee and a long-time Bush ally, is set to support the administration’s new budget discipline. This includes, by the way, Bush’s plan to reduce Social Security benefits by replacing wage indexing with a price-level formula and extending the retirement age — one or the other, or both — in return for personal saving accounts.

By the way, Treasury Secretary John Snow just completed a Wall Street tour where leading bond traders told him not to sweat the transitional costs for personal accounts. The traders said that an additional $100 billion a year over the next decade for transitional financing will be easily manageable. “A rounding error,� one senior trader told Snow.

A supply-side tax-reform movement, a shrinking budget deficit, newfound spending discipline, and a determination to confound conventional wisdom by reforming Social Security has George W. Bush’s second term off to a roaring start — even before he is officially sworn in.

— Larry Kudlow, NRO’s Economics Editor, is host with Jim Cramer of CNBC’s Kudlow & Cramer and author of the daily web blog, Kudlow’s Money Politic$.

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Mac 'n' Steeze Movie

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XtSurfMogulXt, whats your point? are you agreeing that this is good news or are you implying that there is something wrong behind this? just curious, cuz i couldnt tell

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'To the natural style'
 
no, that was just a totaly unbiased post for once (in my opinion). I didn't state my opinion or imply it. I just people to read things before getting their backs up at stuff. The same reason i read all 61 questions from that other post. As you may now tell from this post, i'm in general a bush supporter, but i'm not hugely into it. I realize he, and everyone has/have his/their flaws.

but yeah, in general, i just think people should be informed. Ignorance may be bliss, but i wouldn't say it's an admirable trait.

 
GEORGE BUSH DIDN'T DO ANYTHING ABOUT THE SHRINKING DEFICIT. It was BILL CLINTON. He started a bunch of new ski companies which brought skiing more known to the public thus causing a HUGE rise in skis being bought which would be taxed at 50% to fill the deficit. And they sold SURF wax because it smells good and everyone buys it for the scent.

 
well, as long as america is moving forward, i'll be happy. so far, bush hasn't done that much to piss me off...yet.

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Good Fun With A Hand Gun.

Future Canadian
 
'At this pace, the 2005 deficit is on track to drop to $355 billion from $413 billion in fiscal year 2004.'

i'm no economist so correct me if i'm wrong, but wouldn't not intending to spend another $80 billion on iraq cause the projected 2005 budget to be that much less than fiscal 2004?

'He's just a fast food knight'

Proud to represent a BLUE STATE
 
I might be wrong, but $355 billion is a huge fucking amount that should never have been there in the first place.

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no,my parents didnt go to college, my dad has a grade 9 education and my mom is a stupid slut -lateralis

'I don't like people who take drugs... Customs men for example.'

 
^and it came all from the war in Iraq and W's coke habit right?

Politicaly Active Since 1992

'Soberity is not an option.'

Drivin that Train
 
Oh good... hey, can I have a medal for blowing up a building and then cleaning up some of the rubble? That'd be neat.

I love the national review. They don't even try to sound impartial. It's very refreshing, considering the practices of some other right-wing media outlets.

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In a haze

A stormy haze

I’ll be around

I’ll be loving you

Always

Always

Here I am

And I’ll take my time

Here I am

And I’ll wait in line

Always

Always...
 
He should just tell the countries they borrowed the money from listen guy were not going to pay you back. then they should anounce that our deficit is now at 0. That would show Americas total ass-kicking-ness and if a country has something to say we just ignore them.

 
At this rate, bush wont have even cleaned up his own mess, much less begin to built up a reserve. The world's most powerful country and we're running on borrowed money. Maybe we should do some presidential security budget cuts. I bet that's one area that's not having any financial problems. The war machine seems to be doing fine as well. It's the schools that are looking pretty red right now.

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no,my parents didnt go to college, my dad has a grade 9 education and my mom is a stupid slut -lateralis

'I don't like people who take drugs... Customs men for example.'

 
ya, they borrow money from us. we've run out of money, so we're now borrowing money from the coutries that are in debt to us but dont have the money to pay us back so they have to borrow money from us. It's a vicious cycle.

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no,my parents didnt go to college, my dad has a grade 9 education and my mom is a stupid slut -lateralis

'I don't like people who take drugs... Customs men for example.'

 
just to let everyone know the money spent on the war in iraq is not included in the budget or the deficit, and all of you idiots who keep blaming the deficit on bush, ask any educated individual who knows shit about economics, the economy was in one of its longest periods of prosperity during the clinton administration, so due to the cyclical nature of our economy, we had to have some sort of recession, and it was a relatively short one in comparison to the long surplus that occurred before it, so stop saying that the budget deficit and the economy is bush's mess, because even though the economy can be affected by our governments decision, it is always going to proceed along the path that it has been for hundreds of years, the economy has periods of prosperity, followed by recessions, the president cannot prevent this, get that through your heads

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HIGH NORTH SESSION 4

The Hot Sauce Champion of the World
 
^amen.

the fuckin deficit has been around since the early 1900's, probly even before that. so how is this bush's fault? you guys are so typical and predictable. go take a history class and realize that the economy goes into a depression every twenty years. know your shit before you try to act like you know what your talking about.

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'To the natural style'
 
The defecit isn't shrinking. The amount of money George Bush is putting towards teh defecit is shrinking. It better be since last year he ran the biggest defecit ever. Eleven million isn't even that much out of 500+ million dollars.

Like a virgin on prom night

A few soft moans

You can go on the bottom bunk and finish it yourself

When you guys are on those rails, it's like muah

You A-hole
 
if that made any sense whatsoever i might be able to respond

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HIGH NORTH SESSION 4

The Hot Sauce Champion of the World
 
^I don't understand, can you elaborate?

The national debt didn't decrease. The rate at which the US is going deeper into debt did, by less that 2.5%.

Like a virgin on prom night

A few soft moans

You can go on the bottom bunk and finish it yourself

When you guys are on those rails, it's like muah

You A-hole
 
At this pace, the 2005 deficit is on track to drop to $355 billion from $413 billion in fiscal year 2004.

isnt the US deficit in the TRILLIONS? what are they talking about then

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A view on the downfall of the US by 221: 'godzilla man. he's gonna show up and shit will hit the fan.'

ellermann -> i hope you realize you just threw yourselves a birthday party online. just think about that for a little while

Ryan V.G

~~Phunkin Phatt Phreerider~~

Dragons Lair
 
you guys this is from the national review thats like taking micheal moore seriously. you have to be careful about what you belive

-------------------------------------http://www.mp3players4free.com/default.aspx?r=15385

4

eggs and bacon double steezy if you pleezy

you know when you see a bum and he tells you he's Jesus he probobly is so give him some cash all right

 
yeah, the article plays with jargon in order to make the reader believe the debt is decreasing. It really just points out the fact that the yearly plunge into debt is still huge this year compared to the past.

Like a virgin on prom night

A few soft moans

You can go on the bottom bunk and finish it yourself

When you guys are on those rails, it's like muah

You A-hole
 
People often fail to compare our assets (cash/properties) to our liabilities (deficit). We are still the wealthiest nation in the world. The deficit is nothing in comparison to what we HAVE

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Getting it Right In America

Right In America

'Except For Ending Slavery, Facism, Nazism, and Communism War Has Never Solved Anything'

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Sick of Michael Moore's lies?

MooreWatch

Bush/Cheney '04
 
This is pretty much what i got out of it. Yay, we will only be $355 billion in the hole in 2005!!!

I can't believe it, thats like nothing...

Girls only want to date guys with good skills, like nunchuck skills, bowstaff skills, computer hacking skills...
 
this is true, i am wrong, i will admit it. (i think)

Girls only want to date guys with good skills, like nunchuck skills, bowstaff skills, computer hacking skills...
 
yeah, that article blows

Like a virgin on prom night

A few soft moans

You can go on the bottom bunk and finish it yourself

When you guys are on those rails, it's like muah

You A-hole
 
if you don't know the difference between the national debt and the national deficit then you should have never posted in this thread in the first place

Politicaly Active Since 1992

'Soberity is not an option.'

Drivin that Train
 
who ever said bush has no effect on our deficit is wrong.

what do tax cuts do? they put more money on our hands and out of the goverments, this means that the government doesnt have as much money. if you dont have as much money as before, then how in gods name are we going to pay off our debts?

------------------------------------------------------------------------------------------------'I want my penis to employ more people than Microsoft.' - Some kid
 
$355 Billion deficit for 2005. Meaning that economists are projecting the National Deficit to only grow by $355 Billiob, instead of the $413 Billion it did last year.

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'you guys are retarded'

'you got like 3 feet of air'
 
oooh im so excited! that makes everything all better! this and Bush donbating 10k of his own $ to the tsunami fund! now i like him! go Bush, your the best!

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Joe is out of school didnt fucking ask for much Couldnt get a job the marines his last hope Down at the frontline with a gun not a toy Kill many men not asking what for Joe's family the comrades next to him Die one by one his luck is running out Joe wrote back home his parents unemployed The rich is fuckin laughing profits from the war Joe is off to die for another senseless war No arms no legs his mother cries at home Joey wears the flag so proud to fight for us And for a government that doesnt give a fuck
 
yah that donation is pathetic, my parents could afford to do that and they arent fuckin millionaries like hte president

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Pat

'The deep south? Isn't that the place where the black people are lazy and the white people are just as lazy, but they are mad at the black people for being lazy?'
 
I hope everyone realized that the National Review was started by William Buckley, and it's the most conservative party-driven magazine in existence. But you all knew that, right?

We have an old saying down on the bayou....Blehhhhh!!!
 
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