Federal deficit shrinks for 2012

esh_gaOctober 15, 2012

The federal budget deficit has topped $1 trillion for a fourth straight year. But a modest improvement in economic growth helped narrow the gap by $207 billion compared with last year.

The Treasury Department said Friday that the deficit for the 2012 budget year totaled $1.1 trillion. Tax revenue rose 6.4 percent from last year to more than $2.4 trillion, helping contain the deficit.

The government's revenue rose as more people got jobs and received income. Corporations also contributed more tax revenue than in 2011. This pushed receipts up to $2.449 trillion in 2012, up 6.4 percent from last year, according to the Treasury Department.

"We are seeing the stimulus spending fading and we are seeing some of the effects of the investment incentives," Lou Crandall, chief economist with Wrightson ICAP, said.

Government spending fell 1.7 percent to $3.5 trillion. The decline reflected, in part, less defense spending as U.S. military involvement in Iraq was winding down.

Things are improving - something that gets very little press from the Republicans. The deficit is a large thing to turn around (much like the Titanic), but it went from $1.41 the year Bush left office to $1.1 now. Next year with the expiration of the top tax cuts and even more economic improvement, it will be lower by an even higher percentage.

We are moving FORWARD.

Here is a link that might be useful: source

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jillinnj

Thanks, esh! Yes, we are moving forward. Slowly, but surely. Let's hope we can continue that progress with another 4 years, and not revert back to policy that has been proven to not work.

    Bookmark   October 15, 2012 at 9:45AM
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marquest(z5 PA)

Yes more good news! Looking Forward to 2013 of better days ahead and not going backward..

    Bookmark   October 15, 2012 at 9:58AM
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esh_ga

An interesting (but long) article of what the author expects after the election based on who wins.

I learned a few things about Obama and I think that Romney folks might find it of interest too.

all the signs suggest both candidates do have strategies in mind to prod the creaky machinery of Washington to life and effect the dramatic change they vaguely but ardently promise. In fact, shortly after the next Inaugural Ball - perhaps very, very shortly after - the great stalemate between socialism and social Darwinism will break open and likely turn decisively in one direction or the other.

For different reasons, the candidates cannot openly describe these plans to the voters. But the clues are everywhere.

Here is a link that might be useful: Obama/Romney economic plans Day 1

    Bookmark   October 15, 2012 at 10:00AM
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maddie_athome

Now that's bad news!

Also, the DOW has more than doubled since March 2009. Obama sure's the crappiest Socialist ever.

    Bookmark   October 15, 2012 at 10:05AM
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labrea_gw

It's all a lie!

    Bookmark   October 15, 2012 at 10:15AM
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notto

It doesn't matter. The lines are drawn. The people who live in fantasyland and think THEY can become that 1% like Romney are voting R & R just to ruin the economy like during the Dumbya (Bush) Reign.

btw- Romney says he will get tough on China, imports and outsourcing. How is THAT for a huge lie? He is telling voters ANYTHINg they want to hear. A typical person does not understand that you have to be nice to the people who lend you money. Yup, he's going to bite the hand that is feeding America. Thanks to Bush we are in this mess.

    Bookmark   October 15, 2012 at 10:15AM
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dublinbay z6 (KS)

Here is a particularly interesting point in the long article that esh linked to:

Assuming Obama wins reelection, the moment the apple falls in Times Square, the Republican anti-tax crusade will be broken, and with it the pathology that has launched the deficit wars.
This is not the story you have heard about the budget. You have probably heard a terrifying tale of dysfunction and impending doom, with the catchphrase "the fiscal cliff" used by budget wonks to describe all the automatic changes scheduled for January 1....

This is all utterly wrong. Bipartisan agreement is not necessary to fix the debt. Nothing is necessary to fix the debt. ... In the absence of any agreement between the president and Congress, the deficit will shrink to less than one percent of the economy by 2018, and remain below that level through 2022.

That is a very revealing statement -- I hear no one actually talking about it. How this will happen, the article claims, is that Jan. 1, 2013, all the Bush tax cuts (that everyone has been wrangling about, endlessly) will automatically end. The only way they could be continued is if President Obama took a specific action to retain them. However, if he refuses to do anything, those Bush tax cuts will go away on their own as of that day. And the money the treasury will accumulate will bring about the deficit-reduction results indicated in the quote above.

One of the most informative articles I've read in some time. Do plough through it. You'll learn something, I promise.

Kate

    Bookmark   October 15, 2012 at 11:36AM
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dublinbay z6 (KS)

I was hoping this post would garner more attention. It links to one of the more solid, informative sources that have been posted on this forum in some time.

Do try reading at least the last couple pages of the link--truly worth thinking about.

The earlier pages cover a scenario of what Romney will do if elected president--and not the usual propaganda stuff we've become too used to in today's politics.

This long article is a genuinely fair and balanced look at the likely possibilitites--on both sides of the political divide. I urge you again--do read it.

Kate

    Bookmark   October 15, 2012 at 12:12PM
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jillinnj

Thanks, esh, for the article, and Kate for the push to read it.

It was very interesting. I agree that everyone should read it. It's a different view point from everything we've heard so far.

    Bookmark   October 15, 2012 at 3:23PM
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citywoman2012

Well, isn't the timing just right here a few weeks before
election.

Maybe the Obama WH can spin real fast and cough up about
several million jobs in the next week.

Now THAT would look good and might help him.

    Bookmark   October 15, 2012 at 3:31PM
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esh_ga

Well, isn't the timing just right here a few weeks before
election.

Think he cooked the numbers?

    Bookmark   October 15, 2012 at 3:37PM
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lily316(z5PA)

Of course you know you're preaching to the choir, Esh. Don't think for a moment that any of the Righties will read and comprehend what they're reading. The brainwashing by Faux has their brains frozen to facts other than what they preach. .

    Bookmark   October 15, 2012 at 3:39PM
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esh_ga

I expect the last jobs report to come will look pretty good. Seasonal hiring has already started - that's one reason.

    Bookmark   October 15, 2012 at 3:57PM
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ingrid_vc(Z10 SoCal)

It is a VERY interesting article - and makes me feel even more confident that I'm voting for the right person.

    Bookmark   October 15, 2012 at 4:04PM
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fouquieria(10b)

What I've never understood about reactionaries is that they play the uber-patriotic game and yet they are so distrustful of our government. Once a Democrat becomes President, suddenly the entire government bureaucracy becomes his tool.

I am starting to think it's a personality disorder. Well actually, maybe I've thought that for awhile now.

-Ron-

    Bookmark   October 15, 2012 at 5:07PM
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nancy_in_venice_ca Sunset 24 z10

I don't trust the commie-inspired U.S. Treasury Department. Seems suspicious to me since we all know that Kenyan socialists, especially Kenyan Muslim socialists with unresolved emotional conflicts regarding their birth father, are profligate spenders who want to destroy the industrialized world.

    Bookmark   October 15, 2012 at 6:47PM
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bboy(USDA 8 Sunset 5 WA)

The expression preaching to the choir refers to trying to convert people who already share your beliefs, which may not be what you meant.

    Bookmark   October 15, 2012 at 7:31PM
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citywoman2012

Nancy....you think that too!!!!????? :)

    Bookmark   October 15, 2012 at 7:35PM
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marquest(z5 PA)

That was a good article. I have been doing a few things getting ready for the holidays. Yes I start early because I want to be ready. But good article. Thanks Esh and Kate

Don't worry about the few doubters. If you count the ones that cannot read and the ones that are reading that post on HT;. The readers out number them. You notice that the polls reflect about the same percentage? Even when we get a new lurker they are saying they have been reading and leaning to voting for the right President.

    Bookmark   October 15, 2012 at 7:42PM
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ingrid_vc(Z10 SoCal)

To pull back a country from the brink of a complete economic meltdown in less than four years is an incredible achievement, and anyone who doesn't understand this must be wearing blinders. The projection at the time was that it would take five to ten years to get to a point even close to where we are now. I believe the bulk of the credit goes to President Obama. If Congress had rallied behind him and been a help rather than a willfully obstructive hindrance, who knows whether this might not have been achieved even sooner.

An Englishwoman told me that if England were even close in their economy to what we have now the English would be ecstatic. She said we're not even aware of how fortunate we are here. And this is not the end; I truly believe the situation will improve even more as time goes on because we're headed in the right direction.

    Bookmark   October 15, 2012 at 10:56PM
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