Federal government shows a budget surplus

[PLC1]

Keep in mind that the government got a massive capital gains tax boost from last year that is unlikely to repeat itself, and also I believe it was Fannie Mae that paid $60 billion to the government at the beginning of June.

So, that 60 B would account for just over half of June's surplus.

 

[BigRob]

So, that 60 B would account for just over half of June's surplus.

Yep. From the WSJ:

Receipts during the October to June period have jumped about 14% to $2.087 trillion, thanks largely to higher payroll taxes, higher tax rates for households making more than $450,000, solid job growth and stronger incomes.

Spending for the nine-month period is down 5%. Defense outlays fell 7%. Unemployment payments declined 24%, reflecting an improving labor market as well as a reduction in extended jobless benefits.

Under current policies, the deficit is expected to fall to $642 billion for the full fiscal year and get as low as $378 billion in 2015, according to Congressional Budget Office projections. (my edit -- these projections are somewhat dubious, but it would be great if they came to pass) The deficit for the prior year was $1.089 trillion. The last time the deficit was under $1 trillion was 2008, when spending outpaced revenue by $458.55 billion.

 

[PLC1]

Yep. From the WSJ:

Receipts during the October to June period have jumped about 14% to $2.087 trillion, thanks largely to higher payroll taxes, higher tax rates for households making more than $450,000, solid job growth and stronger incomes.

Spending for the nine-month period is down 5%. Defense outlays fell 7%. Unemployment payments declined 24%, reflecting an improving labor market as well as a reduction in extended jobless benefits.

Under current policies, the deficit is expected to fall to $642 billion for the full fiscal year and get as low as $378 billion in 2015, according to Congressional Budget Office projections. (my edit -- these projections are somewhat dubious, but it would be great if they came to pass) The deficit for the prior year was $1.089 trillion. The last time the deficit was under $1 trillion was 2008, when spending outpaced revenue by $458.55 billion.

Wow! So, Washington is doing something right, after all. Spending is down, unemployment is down, tax receipts are up, the deficit is down, and all this not from a liberal blog, but from the WSJ. That sounds like good news to me.

 

[dogtowner]

Wow! So, Washington is doing something right, after all. Spending is down, unemployment is down, tax receipts are up, the deficit is down, and all this not from a liberal blog, but from the WSJ. That sounds like good news to me.

unemployment is down because of the dropping workforce participation. and isnt it funny how we have 3ook+ initial claims for unemployment every week to 100k+ more jobs and somehow that = growth ?

 

[Dr.Who]

This past January, along with everything else.

The top marginal tax rate went from 35% to 39.4%
Phase out of personal exemptions, limits on deductions and social security went from 4.2% to 6.2%.
Also, capital gains went from 15% to 20%.

Some tax increases won't result in higher revenues - like the top marginal tax rate. But some will.

 

[PLC1]

Wow! So, Washington is doing something right, after all. Spending is down, unemployment is down, tax receipts are up, the deficit is down, and all this not from a liberal blog, but from the WSJ. That sounds like good news to me.

If that is the case, then tax expenditures should be up, receipts down, and the deficit growing.