Author: Derek Gallahan
The Congressional Budget Office recently released statistics related to 2011 that offer a glimmer of hope related to the Federal Budget Deficit. Had it not been for unusual timing issues affecting the payments and receipts specific to 2011, there would have been an approximate $140 billion decrease in the deficit. This is in large part due to increased revenues from individual income tax payments that rose 6.5% over 2010 even as corporate and payroll taxes fell. Further, though 2011 spending roughly matched 2010, both years’ spending was less than 2009 by approximately 1.1% of GDP. Both of these trends over a glimmer of hope as 2011 wraps up, and we head into the new year.
Source: Congressional Budget Office http://cboblog.cbo.gov/?p=2998
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