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.
Government revenues increased because wages and salaries were higher, the payroll tax cut of the past two years expired on Jan. 1 and the fiscal cliff deal brokered over New Year's raised tax rates on high earners.
Spending, meanwhile, fell 1.9% year over year, the CBO estimated. The biggest percentage drop occurred in the payment of unemployment benefits, which were down nearly 25%, or $15 billion. Defense spending fell 5.3%, or $20 billion, and "other activities" -- primarily spending on nondefense programs -- fell 8.6%, or $58 billion.
Source: CNN Money
Will Republicans acknowledge the improvement or will they continue to try to talk down the American economy?
The stock market is at an all-time high. It’s basically back to where it was in 2000. Corporate earnings have doubled since then.
Yet the real median wage is now 8 percent below what it was in 2000, and unemployment remains sky-high.
A healthy economy isn’t measured by the profits of corporations headquartered within it, or the value of its stock market. It depends, rather, on how many of people have jobs and whether those jobs pay decent wages.
By this measure, we’re a long way from economic health.
Lets thank Juan #$%$ for allowing the Kenyan to raise taxes by letting most of the Chimp's tax cuts on the rich expire, this will be the first time in 8 yrs that they have paid down the debt- raise a blass of merlot to Juan!