We may be witnessing the biggest one-year nominal drop in the deficit that has ever occurred,

[mikekohr]

DEFICIT SHRINKS FROM LAST YEAR'S RECORD.... Deficit hawks probably won't be pleased with the total, but they should at least be pleased with the direction.

The federal government budget deficit shrank in fiscal 2010, but the big gap was only $122 billion lower than the record high set a year ago.

The U.S. spent $1.294 trillion more than it collected in the fiscal year that ended Sept. 30, the Treasury Department said Friday.

The deficit amounted to 8.9% of gross domestic product. That's down from fiscal 2009, when the deficit of $1.416 trillion was 10.0% of GDP.

Spending fell and revenues rose in fiscal 2010 as the economy recovered from the deep recession that contributed to the nation's troubled fiscal condition.

If this sounds familiar, it's because the Congressional Budget Office reported on its estimate of the federal budget deficit for FY2010 would just last week. Today's Treasury report is the official deficit tally, though as it turns out, the CBO projection was almost on the nose.

The $1.294 trillion shortfall is smaller than last year's total; it's slightly lower than the deficit President Obama inherited from his predecessor; and the final figure was smaller than projections made by the administration and the CBO earlier this year.

Want to have some fun? Ask your favorite Tea Partier whether the deficit they claim to care so much about is higher or lower now than when Obama took office. They won't care for the answer, but it's true.

What's more, as Stan Collender recently noted, the $122 billion improvement on the deficit "is the biggest one-year nominal drop in the deficit that has ever occurred." We probably won't see headlines blaring, "U.S. achieves biggest one-year deficit reduction in American history," but that just happens to be the case.

read full article:
http://www.washingtonmonthly.com/archives/individual/2010_10/026151.php


Steve Benen

[elleng]

1. but shhhhh, don't let anyone know.

x(

[mikekohr]

2. :D Let Everyone Know :D

especially Tea Baggers, and credit card Republicans

HOW THE DEBT EXPLODED:
http://bureaucountydems.blogspot.com/p/national-debt.html

mike kohr
Bureau County Democrats
http://bureaucountydems.blogspot.com

[subterranean]

3. The drop will be even bigger next year.

[hollowdweller]

4. When both tax cuts exxpire it will REALLY lower the deficit.

I personally think Obama should let both tax cuts expire if the GOP won't compromise and then run on deficit reduction.

[mikekohr]

19. Republicans Set To Kill Middle Class Hostage In Their Quest To Preserve +$100,00.00 Give-A-Ways

To Millionaires


As the George W. Bush tax give-a-ways to the rich are set to expire there are two proposals on the table. Republicans are unwilling to allow President Obama to give tax relief to working class people unless the deficit exploding tax give-a-ways to millionaires are preserved.

Both the Republican AND Democrat plans give tax cuts to all income brackets. But as the graphic below demonstrates the Republican plan gives massive breaks to the richest 5% of Americans. With no spending cuts to offset this give-a-way this plan will add over $700 billion to the national debt. It is this kind of Voo Doo Economics that have lead to the last 3 Republican Presidents adding $9.2 trillion to the National Debt since 1981. Advocates of Trickle Down Economics have promised increased job creation and increased tax revenues, two promises that have NEVER been fulfilled (see also National Debt & Job Creation).

?

-double click graphic for larger image-

[Clio the Leo]

5. love it. nt

[ProSense]

6. One would think

that with all the concerns about letting the tax cuts expire instead of adding to the defict, this news would be more popular.

[flamingdem]

16. Practically the first I've heard of it in the din nt

[impik]

7. So what? Just another Obama achievement to be ignored

[Kdillard]

9. Yep.

[dkf]

8. How much is because the banks repaid tarp?

[babylonsister]

10. Does it matter? And BANKS REPAID TARP, another nugget

no one seems to think is important, despite all the people who thought it'd never happen.

[dkf]

12. We made billions...finally the government makes money instead of spending.

[catgirl]

11. We'll see if this gets reported in MSM

They seem to be obsessed with more important things- What Christine O/Donnell said, Sarah Palin, Briston Palin on DWTS,
etcc.

[mikekohr]

13. President Obama Is On The Same Glide Pattern To Balance The Budget As President Clinton

President Obama inherited two wars, a far, far deeper recesion and much much bigger deficit than did President Clinton. It took Wild Bill 4 years to flatline GHW Bush's massive decifits, he then produced 4 budget surplus' which is 4 times as many balanced budgets as the last 5 Republican presidents combined.

see CBO tables on yearly deficits: http://www.cbo.gov/ftpdocs/108xx/doc10871/HistoricalTables.pdf

See How Republicans EXPLODED the National Debt: http://bureaucountydems.blogspot.com/p/national-debt.html

mike kohr
Bureau County Democrats
http://bureaucountydems.blogspot.com

[OhioBlue]

15. thanks!!! n/t

[Control-Z]

14. Bookmarking.

To use as needed. Thanks!

[jillan]

17. Not one word on the news.... except Rachel.

[mikekohr]

18. POP QUIZ: Which of the following will make up a majority of the deficit in the next decade?

A) Social Security
B) Medicare
C) The National Park Service
D) PBS
E) George Bush's tax cuts

Give up? The answer is E) -George Bush's tax breaks for the rich-

Of course the Debt Commission focussed all its concerns on A), B),C), and D). They would rather turn Medicare into a voucher system, surrender "fair and balanced" news reporting to Fox News, decimate the National Park System and have working Americans drop dead on the job from old age.

mike kohr
Bureau County Democrats
http://bureaucountydems.blogspot.com