Budget Deficits Continue to Fall
August 15, 2005
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.
Was this page helpful to you?
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?Contribute to the Tax Foundation
Let us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?Give Us Feedback