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Deficit Estimated Lowest In Four Years

I blame Bush.

The federal deficit will register $260 billion this year, the lowest in four years, reflecting a strong economy and resulting growth in tax revenue, congressional analysts said Friday.

The estimate by the nonpartisan Congressional Budget Office is well below its earlier predictions and also below the $296 billion White House estimate less than a month ago.

Better-than-expected revenues are driving the deficit down from last year's $318 billion figure and far below the record $413 billion posted in 2004.

At $260 billion, it would be the lowest since the $158 billion figure in 2002, the first deficit following four years of surpluses.

The deficit picture is even better when measured against the size of the economy, which is the comparison economists think is most important.

"At 2 percent of gross domestic product, the 2006 deficit would be smaller than the deficit recorded in the past three years -- 3.5 percent in 2003, 3.6 percent in 2004 and 2.6 percent in 2005," said the CBO report.

I am sure this good economic news will lead all the national newscasts this weekend.


Comments (18)

I blame Israel and the jooo... (Below threshold)
James Cloninger:

I blame Israel and the jooooos.

No one will believe it. The... (Below threshold)
Scrapiron:

No one will believe it. The left wingers still haven't figured out that the only surplus (was the most lies by any group of people in 8 years) in the 90's was a result of creative bookkeeping (same as Worldcom) by Slick Willie's regime. It is out as a fact now but they still think there was a surplus and the antique MSM will not correct the lies they told for years. Budgets surplus's are like polls, the result depends on the biggest liar.

Captain's Quarters has some... (Below threshold)
Ted:

Captain's Quarters has something up about this, going into some detail about the creative bookkeeping used to mask the real size of the deficit. It's not limited to either party either, no matter who's in charge they're cooking the books.

Now, if they stay consistent, then the deficit numbers are good for comparative purposes, even if not the true figures. The problem is when they change methodology, then you lose any value in the numbers at all.

During our other major wars... (Below threshold)
andrew:

During our other major wars have we ever had a budget deficit as low as 2% of GDP?

***LEFTY NEWS FLASH***</... (Below threshold)
Jumpinjoe:

***LEFTY NEWS FLASH***

More proof of the failed Bush economic policy. The second quarter of 2006 ONLY produced 108,000 jobs per month, WAY, WAY below forecasted expectations.

In the meantime, 4.6% of the population is suffering from unemployment created by this greedy tax cut for the rich administration.

Democrats can do better by taxing this country into prosperity as proven from past tax increases.

After all, look how Ronald Reagan benefited from the 70% tax brackets instituted by the Carter administration. Carter never got the credit as the propaganda machine of the right failed to give credit where credit was due.

In other world economic news, the island paradise of Cuba maintains a zero unemployment rate and continues to furnish free college educations and free health care to it’s citizens.

***LEFTY SPORTS NEWS***

Kim Jong II, makes 11 holes in one on his first attempt at golf.

I love talking to a rightie... (Below threshold)
Mr. Grey:

I love talking to a rightie when the deficit is staggeringly high and hearing how unimportant it is, then when the news improves, listening the him/her trumpet it from the rooftops.

If there was ever a subject that the general public had little or no grasp on, this is it, and it's used for partisan gain on both sides every single year

Andrew;Babysitting... (Below threshold)
farcyde:

Andrew;

Babysitting a bunch of ungrateful Iraqis blowing each other up can hardly be considered a "major" war. One more lost American life over that wretched hell hole of a ountry is far too much. Just my 2 cents.

By the same token I love li... (Below threshold)
chad:

By the same token I love listening to someone talk about how important the deficit is and then ignoring the numbers when they are better than expected. The same is done with GDP growth, and unemployment.

I have to agree with Ted. ... (Below threshold)

I have to agree with Ted. The "deficit" is a cooked number that ignores certain entitlements, like Medicare and Social Security. Kinda like Enron's public books before the meltdown...

I love talking to ... (Below threshold)
Jumpinjoe:
I love talking to a rightie when the deficit is staggeringly high and hearing how unimportant it is, then when the news improves, listening the him/her trumpet it from the rooftops.

I love talking to lefties who are oblivious to the fact that lefty economics gave us the coined phrase “Tax and Spend Liberal”.

Please lefties, when discussing economics, just post “DUH, deet da dee” and be through with it. It will have the same meaning as any other rambling words you could post.

I have to agree with Ted... (Below threshold)
jpm100:

I have to agree with Ted. The "deficit" is a cooked number that ignores certain entitlements, like Medicare and Social Security. Kinda like Enron's public books before the meltdown...

They always have been cooked so its still somewhat valid for a relative comparison

I believe the recipe was re... (Below threshold)
epador:

I believe the recipe was recently changed to make the cooked values more palatable. And more difficult to compare.

Gee, just think how low the... (Below threshold)
Tim:

Gee, just think how low the deficit could go if we doubled everyone's taxes. Of course, the people not paying any taxes will be a bit miffed that their bill was doubled, but you gotta break a few eggs if you want to scramble an omelet. Or something.

Let's see, according to "Th... (Below threshold)
GoldenGreg:

Let's see, according to "The Economist" (a non-right rag), France's debt to percentage of GDP is about 52%, vs. our 2-3%. Yet all we hear about is our huge U.S. deficit in total Dollars vs. %. No spin there.... I won't even mention out employment rate compared to theirs in sympathy.

Oh wait, I am incorrect. I... (Below threshold)
GoldenGreg:

Oh wait, I am incorrect. It is actually 66% public debt to GDP from Mr. Chirac. And Since Lefties always demand sources and yet ignore them, here it is:
The Economist: July 15th-21st 2006. Title: "The man who deserves as red card". Page 49, column 2, paragraph 3. "It's(France's) public debt has swollen from 55% of GDP to 66%"
Yes our 2% is huge, lol.

GoldenGreg,You mig... (Below threshold)
jc:

GoldenGreg,

You might be confusing deficit and debt. Our debt is probably in the 60-70% range of GDP, which is not huge compared to just after World War II, for example, when it was over 200%. Clinton was at about 63%, I think, for his whole administration.

(Lefties like to compare deficit to GNP instead of GDP because it makes the problem they created of production leaving the US look like a huge spike in deficit for Bush.)

Okay, now I'm guilty of con... (Below threshold)
jc:

Okay, now I'm guilty of confusing GDP and GNP, so disregard my last comment.

Also, it peaked at 120%, no... (Below threshold)
jc:

Also, it peaked at 120%, not 200%. I'm still trying to find a graph of debt vs. GNP to show the difference. Here's the GDP one:

http://zfacts.com/p/318.html




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