Federal Deficit

Congressional Budget Office, or CBO, estimates the 2006 budget deficit at $250 billion, far better than expected a year ago, and lower than projected over the summer as well. Corporate tax revenues contributed heavily to the decrease. Of course the fact we are also at war also has something to do with the deficit.

"The Congressional Budget Office's latest estimate is $10 billion below CBO predictions issued in August and well below a July White House prediction of $296 billion. The improving deficit picture — Bush predicted a $423 billion deficit in his February budget — has been driven by better-than-expected tax receipts, especially from corporate profits, CBO said. The 2005 deficit registered $318 billion; the record $413 billion deficit was posted in 2004. At $250 billion, it would be the lowest since the $158 billion figure in 2002, the first deficit following four years of surpluses."

Of course, if you look at the deficit as a percentage of the economy, it looks even better than that. Fox even points it out, although they don't give numbers - which today, is around 65% (Total Debt as a percentage of the economy, or just under 2% for the year if looking at the $250 billion)

"when measured against the size of the economy, which is the comparison economists think is most important, the deficit picture looks even better."

Maybe the message from this guy is getting out. He had a good post on a politician, running for Senate in North Dakota, that appears to have learned the lesson.