WHAT SHALL WE DO WITH THE SURPLUS (via John Resnick):

Federal Deficit Sharply Lower (Martin Crutsinger, 6/12/07, AP)

The federal deficit is running sharply lower through the first eight months of this budget year as growth in revenues continues to outpace the growth in spending.

The Treasury Department said that the deficit through May totaled $148.5 billion, down 34.6 percent from the same period a year ago. [...]

Revenue gains are up 8 percent while outlays are up at a slower pace of 2.5 percent, compared to the same period a year ago. Growth in spending has been slower this year in part because of the absence of last year's huge outlays for hurricane relief.

The increase in revenues has been supported by continued strength in corporate profits and low unemployment, which has helped to push individual income taxes higher.

Better cut taxes before the deficit gets dangerously low again. The global economy depends on our debt.

Posted by Orrin Judd at June 12, 2007 1:39 PM