May 7, 2013

THEY WASTED THE CRISIS:

As red ink recedes, pressure fades for budget deal (Lori Montgomery and Zachary A. Goldfarb, May 7, 2013, Washington Post)

After four years of trillion-dollar deficits, the red ink is receding rapidly in Washington, easing pressure on policymakers and shattering hopes for a summertime budget deal.

Federal tax revenue is up and spending is down thanks to an improving economy, tax hikes enacted in January and the hated budget cuts known as the sequester. As a result, the U.S. Treasury has slowed the pace of borrowing from the frantic days of the 2008 economic crisis and actually expects to repay a tiny fraction of the $16.8 trillion national debt by the end of June.

The budget was always too trivial a problem to require reform.  You had to exploit the hysteria to get any.



MORE:
Current deficit plunges 32% (Jeanne Sahadi, 5/07/13, CNNMoney)

The annual deficit has fallen 32% over the first seven months of this fiscal year compared with same period last year, according to Congressional Budget Office figures released Tuesday.
A major reason: A big jump in tax revenue.

Tax collections rose by $220 billion -- or 16% -- between the start of the fiscal year on Oct. 1 through April 30. Individual and payroll taxes accounted for $184 billion of that increase. [...[

Spending, meanwhile, fell 1.9% year over year, the CBO estimated. 

Posted by at May 7, 2013 6:08 PM
  

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