Tuesday, May 10, 2005


Shrinking deficit, increased tax revenues just not newsworthy

Tax revenues in April were much greater than expected, so much so that over $40 billion in net government debt will be retired in the second quarter, and long term deficit projections are being revised downwards. In fact, some analysts are projecting that the deficit problem has “turned the corner” and will continue to trend downward. Somehow, I missed this information on the TV news… oh wait, I didn’t miss it, the MSM just didn’t bother to cover it, as reported by Noel Sheppard at the ChronWatch Writers Blog:

On Monday, May 2nd, the U.S. Treasury Department announced that, due to a greater than expected influx of tax receipts around April 15, a projected monthly deficit actually became a surplus.

In fact, this influx was so large that the Treasury is going to actually buy-down or retire $42 billion worth of net debt in the second quarter. This would represent the first time that this has occurred since the second quarter of 2001.

As a result, government officials are reducing their deficit numbers for fiscal 2005 and into the future. Furthermore, as reported this morning by the Washington Post:

But in the short term, many forecasters said the budget deficit appears to have crested.
"I think it has turned the corner," said David Wyss, chief economist at Standard & Poor's, the credit rating agency. "My guess is 2004 will have been the worst year."

Now, one would think that the deficit being lower than expected, and the possibility that 2004 would be our worst shortfall during this cycle, would be front-page news, correct?

Yet, a Google-search indicates that no major media outlet picked this story up from Reuters on Monday. Not one.

I guess the MSM would rather concentrate on the Democrats' latest anti-Bush line of B.S., the "repeal the tax cuts and save social security" garbage being doled out. More about that particular pile of garbage later.

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