Forecasters Predict Drop in Deficit (experience, eternal, bless, conservative)

[Theodore]

WASHINGTON - The federal budget-deficit picture turned brighter Monday as congressional scorekeepers released new estimates showing the level of red ink for the current fiscal year would drop to $331 billion.

The new report by the nonpartisan Congressional Budget Office, which does budget analysis for lawmakers in Washington, gave the latest proof that surging revenues and a steadily growing economy are combining to bring the deficit down from a record $412 billion posted last year. CBO predicts a $314 billion deficit for the budget year starting Oct. 1.



http://news.yahoo.com/s/ap/20050815.../budget_deficit

[CaptainXeroid]

As a fiscsal conservative, I'd call this news less bad rather than good. Any government deficit spending is bad for the economy, so Congress needs to reduce spending and cut into the deficit even more.

[Sunstone]

Good luck getting Congress to reduce spending!

[CaptainXeroid]

Originally Posted by Sunstone

Good luck getting Congress to reduce spending!

You're right, and it is highly unlikely, but hope springs eternal. As much as I detest the income tax, I would support letting the Bush tax cuts expire IF Congress at least held the line on spending so the deficit would be reduced.

[Terrywoodenpic]

When was the federal budget last in credit.
when did it last have a combined surplus over a five year period.
What is the national debt.
Will it ever be paid off.
Is the resale value of the USA sufficient to cover the federal and state accumulated debts.

Terry
__________________________________
Blessed are those who bring peace, they shall be children of God

[michel]

It sounds remakably like saying that your awful cold is marginally better. I am glad I have nothing to do with any Country's financial position; having had 28 Years experience of individuals' inability to spend less than they earned, I wouldn't want to have anything with which to deal - like even a small part of the economy of a country.

[Fascist Christ]

Originally Posted by CaptainXeroid

As a fiscsal conservative, I'd call this news less bad rather than good. Any government deficit spending is bad for the economy, so Congress needs to reduce spending and cut into the deficit even more.

Actually, a deficit is good for the economy - if the money is spent internally. For example, you can repave some roads in some poor cities, and hire some local contractors to do it. This way, you create jobs for the people, and improve the quality of life at the same time.

The only time taxes should be changed is to follow averaged spending habits. Taxes ought to be consistent year to year, and not be used as a political tool. If you wish to cut taxes, you should cut spending first. If you wish to improve the economy, spend extra money domestically, not on destruction and reconstruction of foriegn countries.

As an example, maybe adjust taxes every 5 years. If it is a net deficit, raise the taxes. If it is a net surplus, decrease the taxes. Only increase or decrease enough to match the historical spending. If taxes are raised during a recession, it is that much more important to spend that money on the people. If taxes are still too high and the economy is getting worse, then raise or eliminate the bottom bracket so that everyone can benefit.