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 CBO Says 2013 U.S. Budget Deficit Estimated at $642 Billion 
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Modmin Dude
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Post CBO Says 2013 U.S. Budget Deficit Estimated at $642 Billion
FoxBusiness wrote:
CBO Says 2013 U.S. Budget Deficit Estimated at $642 Billion
Published May 14, 2013
Dow Jones Newswires

The Congressional Budget Office said Tuesday the federal deficit is expected to shrink to $642 billion in the fiscal year that ends Sept. 30, down sharply from last year because of higher taxes and other revenues collected by the government.
CBO's projections were markedly different from the $845 billion deficit it projected in February, something the agency attributed to higher-than-expected tax receipts and large projected dividend payments to the government from Fannie Mae (FNMA) and Freddie Mac (FMCC).

The deficit for fiscal year 2013 is projected to be just 4.0% of gross domestic product, CBO said, higher than historical averages but down from 7.0% in 2012 and 10.1% in 2009.

The CBO projected a deficit of $560 billion, or 3.4% of GDP in fiscal 2014, and a deficit of $378 billion, or 2.1% of GDP in 2015.
The narrowing deficit has near-term implications for policy makers. It is expected to delay a showdown over whether to raise the government's debt ceiling beyond the summer. Treasury Secretary Jacob Lew said earlier this week that the government had enough room to continue borrowing money until at least Labor Day, and some analysts have said the rosier fiscal picture could push decisions back until October.

The White House and several budget think tanks have said the deficit should be somewhere below 3% of GDP, but many Republicans have said policy makers should strive to eliminate the deficit entirely.

CBO said that a number of factors, including lower projections on Medicare, Medicaid and Social Security spending, had led it to significantly lower its projections for cumulative deficits over the next 10 years. CBO on Tuesday estimated the total gap between government spending and revenue from 2014 until 2023 would be $6.3 trillion, which was $618 billion less than it projected in February.

Still, CBO said current law wouldn't lead to a meaningful reduction in the deficit on its own. It said that while the deficit is shrinking, federal debt held by the public will "remain above 70% of GDP--far higher than the 39% average seen over the past four decades."

CBO said the debt-to-GDP ratio in 2013 could hit 75.1%, then dip in the next few years before rising again to 73.6% in 2023.
"Such high and rising debt later in the coming decade would have serious negative consequences," CBO said, saying federal spending on interest payments could rise, among other things.

Write to Damian Paletta at damian.paletta@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
Copyright © 2013 Dow Jones Newswires


Read more: http://www.foxbusiness.com/news/2013/05 ... z2TNIrjcuc
With all the political BS going on, I figured we could use a little good news. Not perfect by any means, but it appears to be moving in the correct direction.

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May 15th, 2013, 11:19 am
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Post Re: CBO Says 2013 U.S. Budget Deficit Estimated at $642 Bill
I classify this as "things aren't as crappy as we thought," which is good, but I do agree, the deficit should be 0 (really, it's should be negative, so we can start paying off some of this enormous debt we've run up).


May 15th, 2013, 11:22 am
Modmin Dude
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Post Re: CBO Says 2013 U.S. Budget Deficit Estimated at $642 Bill
wjb21ndtown wrote:
I classify this as "things aren't as crappy as we thought," which is good, but I do agree, the deficit should be 0 (really, it's should be negative, so we can start paying off some of this enormous debt we've run up).
Agreed, but that will take time, especially considering the recession(s) we're coming out of.

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May 15th, 2013, 11:25 am
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Post Re: CBO Says 2013 U.S. Budget Deficit Estimated at $642 Bill
But let me ask a question. The higher taxes that have been used to generate this deficit reduction is not a sustainable path is it? To quote what so many have said, "at some point you run out of other people's money."

Is there a way of doing this by 1. stop spending, 2. higher taxes for "X" period of say 5 years (with a LEGAL GUARANTEE that can NOT BE CHANGED).

This gets the money in the coffers now, but prevents the government from abusing this, and keeping it on the books like they've done income taxes for all the government programs created for the 20th Century and beyond.

It's like a drug was introduce to the populace, and we've grown so addicted to it, that we no longer do for ourselves, we demand that it be done for us, and we're willing to sacrifice anything to get the next hit. (Government programs being the drug, and taxes/rights being what we're willing to give up)

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May 16th, 2013, 8:31 am
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Post Re: CBO Says 2013 U.S. Budget Deficit Estimated at $642 Bill
TheRealWags wrote:
wjb21ndtown wrote:
I classify this as "things aren't as crappy as we thought," which is good, but I do agree, the deficit should be 0 (really, it's should be negative, so we can start paying off some of this enormous debt we've run up).
Agreed, but that will take time, especially considering the recession(s) we're coming out of.


The "recession" isn't the problem. The problem is that approximately 50% of politicians and 50% of the public think it's "ok" to run a 3-4% deficit year after year, for infinity. That's the issue, and that number, and that ideology is growing, not shrinking, with people sucking on the entitlement teat.


May 16th, 2013, 8:44 am
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Post Re: CBO Says 2013 U.S. Budget Deficit Estimated at $642 Bill
I hope I'm not hijacking a thread here but I wasn't sure where else to put the link.

http://www.youtube.com/watch?v=vCjssK-i ... ture=share

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2 Chronicles 10:14, "if my people, who are called by my name, will humble themselves and pray and seek my face and turn from their wicked ways, then I will hear from heaven, and I will forgive their sin and will heal their land."


May 17th, 2013, 6:37 pm
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