CBO Lowers Deficit Estimate

By August 18, 2006Economy

Here’s one that won’t make the front page. See, it only makes the front page if the deficit goes up.

The Congressional Budget Office announced yesterday that they expect the deficit this year to be $112 billion lower than the amount that it estimated in March. The deficit this year is expected to equal 2.0 percent of gross domestic product (GDP), down from 2.6 percent in 2005. Why? Because tax revenues are up. Broken records that we are, we can’t resist: We said that tax cuts would lead to more investment, more spending, more growth – and more tax revenue. And it did. Time to make these tax cuts permanent, keep the growth going.