Budget Deficits Continue to Fall

From Yahoo news:

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 falling deficits illustrate how rising incomes increase tax revenues rapidly because of the progressive tax code. If employment and income continue growing, the deficit is likely to continue to decrease.

The deficits are still large however, which suggests that the problem isn’t caused by deficient tax revenue, but by excessive spending. Check out past blogs on income and tax collections here, here, and here.