Sunday, October 07, 2012

Deficit Drops $207 Billion…

according to the C.B.O.'s 2012 estimates, which is great news for the Obama administration, and for you and I. The fiscal year ended on September 30, 2012.

   The federal deficit came in at slightly less than  $1.1 trillion,  compared to just under $1.3 trillion at the end of fiscal year 2011, a reduction of $207 billion.  The actual deficit numbers will be released later this month by the Treasury Department.

Total Receipts Were Up by 6 Percent in Fiscal Year 2012

Receipts in fiscal year 2012 totaled $2.5 trillion, $148 billion more than those in the same period last year. Compared with collections in fiscal year 2011:

Net receipts from corporate income taxes grew by $61 billion (or 34 percent), largely because of changes in tax rules in recent years.
Individual income tax receipts grew by $37 billion (or 3 percent), as wages and salaries grew modestly, pushing up withheld tax payments; nonwitheld tax payments rose as well.
Receipts from social insurance taxes rose by $32 billion (or 4 percent), reflecting greater withholding for payroll taxes and an increase in unemployment insurance taxes as states continued to replenish trust funds that were depleted by the recession.
Receipts from other sources increased, on net, by about $18 billion (or 9 percent).

By CBO’s estimates, outlays decreased for several major categories of spending:

Medicaid—Outlays fell by $24 billion (or 9 percent) because legislated increases in the federal share of the program’s costs expired in July 2011.
Unemployment benefits—Spending dropped by $30 billion (or 24 percent), mostly because fewer people have been receiving benefits in recent months.
Defense—Outlays fell by $19 billion (or 3 percent), after adjusting for timing shifts, in part because of lower spending for military operations in Afghanistan and Iraq.
Education programs—Net outlays were lower by $29 billion (or 30 percent), excluding changes recorded in the budget for the estimated cost of student loans. That decline has occurred largely because of waning spending from funding provided by the American Recovery and Reinvestment Act. (Most of that spending occurred before 2012.)          SOURCE

   This is positive proof that the Obama Administrations policies are working despite the Republican obstruction in government over the past 4 years.

   Between last Fridays positive job growth report and this, do we need another reason to reelect Obama to a second term?