Federal Gov has a surplus in Jan., Budget deficit cut in half from last Jan. deficit.

[BigRedChief]

I thought that deficit was causing an economic catastrophe.

Read more: http://www.foxnews.com/politics/2013...#ixzz2LJBzQ5GW

January surplus shrinks 2013 US budget deficit


The federal government reported a rare surplus for January and is on track to run its smallest annual budget deficit since President Obama took office.

The Treasury Department said Tuesday that the government took in a surplus of $2.9 billion in January. That's the first monthly surplus since April, a month that benefited from income tax payments.


January's budget benefited from an estimated $9 billion in extra revenue from higher Social Security taxes. That helped lowered the deficit through the first four months of the budget year to $290.4 billion -- nearly $60 billion lower than the same period a year ago.

--------------------------------------------------------------------------------------------

http://www.reuters.com/article/2012/...8161WV20120207

http://www.reuters.com/article/2013/...91615R20130207

(Reuters) - The budget deficit shrank by nearly half in January compared to a year earlier as tax collections from individuals rose and outlays fell, the Congressional Budget Office said on Tuesday.


The CBO said it expects the Treasury Department to report a $27 billion deficit for January, versus a $50 billion deficit in January 2011.
The January budget gap will bring the total deficit for the first four months of fiscal 2012 to $349 billion, a decrease of about $70 billion from the same period of fiscal 2011.


The CBO last week predicted that the United States would rack up a $1-trillion-plus deficit for a fourth straight year, forecasting a $1.08 trillion gap for fiscal 2012, which ends on September 30. The fiscal 2011 U.S. deficit was $1.3 trillion.


January U.S. receipts were up about $9 billion, or 4 percent from a year earlier, largely because of higher withholdings of individual income and payroll taxes, CBO said.


Outlays were $13 billion, or 5 percent, lower in January 2012 than they were a year earlier. But because of the New Year's holiday, some benefit payments were shifted into December, reducing outlays during the month.


Were it not for these timing changes, the January deficit would have been slightly higher at about $31 billion, CBO said.


The Treasury is expected to report official January budget details on Friday.
(Reporting By David Lawder; Editing by Chizu Nomiyama)

[Pawnmower]

Originally Posted by J Diddy

http://articles.washingtonpost.com/2...rcraft-carrier

Please, oh great one, here is the article from the Washington Post that I referenced. Please point out where it states what you state.

Maybe, just maybe, your assertion is not in every article as you claim. How's that for a ****ing answer?

Its stupid. Just like you are.....look down around the 9th paragraph......where it says an independant study thinks they spend 2% and not 1.28% Gdp. If the 106 billion is based on 1.28% Gdp then simple math tells me you have shit for brains. This is your own source and you cant ****ing read it?

Stop. Posting. Moron

[CrazyPhuD]

Originally Posted by cosmo20002

Talk to the CBO. I'm not making up anything.

"January U.S. receipts were up about $9 billion, or 4 percent from a year earlier, largely because of higher withholdings of individual income and payroll taxes, CBO said."

So here's the real story and if you want to read it from the CBO do so....

http://www.cbo.gov/sites/default/fil...BR_2013_01.pdf

Actual receipts were up ~36Billion for but the majority of that is going to be one time expenses. You are right $9 billion of the $36 billion is due to payroll taxes(note this likely is mostly on the low income earners). Total withheld receipts are up $13Billion of which the $9 million of payroll tax makes up most about $4billion *might* be attributed to the new tax rates but we'll see.

That leaves ~$23Billion surplus....of that the biggest chunk ~$13billion is due to non-withheld taxes i.e. the vast majority will be due to estimated taxes for 2012). Most if not all of that will be from people cashing in capital gains by the end of 2012 because if you have long term capital gains you're smart to take them because it will save you ~9% in taxes if you did so by the end of 2012. You are unlikely to see that surplus return, in fact you should expect a drop in revenue next year. Why? Because with investment income you can generally time your rates. Why take them now when taxes are high instead wait until the taxes rates will get lower again. SO likely $13+Billion of revenue is a one time bonus of people taking expiring taxes.

$10 billion in surplus left. Of that $6 billion is purely an accounting gimmick. Tax refunds were $6 billion lower for January because they delayed processing refunds until Jan 30th.

$4 billion left is hard to predict where it came from but I'm guessing from corp taxes.

So of the 36billion surplus 19Billion is accounting gimmick/one time expenses. What was a 2 billion deficit for January probably should have been a $20 billion. But we'll see taxes are a funny thing raise them and receipts go up before the taxes go into effect but often go down when they go into effect.

[patteeu]

Originally Posted by J Diddy

We are comparing dollars to dollars here patty, because spending cuts is what you don't want. Now you're getting into capability matching etc which is entirely subjective.

This is why you're not up to this conversation. You have absolutely no understanding of why defense spending is important. They're just dollars being diverted from social programs to you.

[BigRedChief]

Originally Posted by cosmo20002

Wrong. Why do you think the US credit rating got dinged? Because for the first time ever, there became a question about whether or not the US would pay its bills.

Austerity is working out great for Britan. Borderline triple dip recession and just got their credit downgraded. Going to cost them BILLIONS is interest.

Seems to me that those BILLIONS that England is going to piss away in higher interest rates would have been better used in numerous other options. We had better learn from Britain or expect the same.

[Stewie]

For the first time in history the Federal Government they paid out NO tax refunds in January! That's how you fool the dumbasses for a single month! Woohoo! MONEY!

[mlyonsd]

Originally Posted by BigRedChief

Austerity is working out great for Britan. Borderline triple dip recession and just got their credit downgraded. Going to cost them BILLIONS is interest.

Seems to me that those BILLIONS that England is going to piss away in higher interest rates would have been better used in numerous other options. We had better learn from Britain or expect the same.

Which is a laughable concern considering we throw away $400-$500 billion dollars a year just on interest to our debt and projections have it closer to $1 Trillion dollars in 10 years. Imagine how much better that money could be used in other options.

The difference between us and England is they've waken up quicker than us and at least tried to address the problem.

Our chimps in charge keep lying to the public for political gain.

[Amnorix]

Originally Posted by BigChiefTablet

I'm still trying to figure out how you can claim a surplus when you don't even have a ****ing budget

Errr...actual spending versus planned spending? What part don't you get?

[Saul Good]

Originally Posted by Pawnmower

Its stupid. Just like you are.....look down around the 9th paragraph......where it says an independant study thinks they spend 2% and not 1.28% Gdp. If the 106 billion is based on 1.28% Gdp then simple math tells me you have shit for brains. This is your own source and you cant ****ing read it?

Stop. Posting. Moron

Diddy up and vanished...

Pretty lame not to acknowledge what a thorough ass kicking you took, j.

[BigChiefTablet]

Originally Posted by Amnorix

Errr...actual spending versus planned spending? What part don't you get?

What's that word for planned spending....you know when you plan out how much you are going to spend? It couldn't be "budget" could it?

[stonedstooge]

Democrats version of a budget: More

[mlyonsd]

The democrats are following Greece's lead in that budgets are silly.

[petegz28]

I guess this means all the whining the Dems are doing about a 2.4% spending cut is a bunch of BS then, heh?

[Xanathol]

Originally Posted by BigRedChief

The point is that the Bush presidency was an economic disaster. Any improvement was based on smoke and mirrors that blew up in our face in 2008. He inherited a surplus and left a huge deficit. Thats the reality.

Only a liar could say such a thing. The economic troubles we're seeing today started with Clinton. Yes, he had a surplus during his administration - because of his botched policies that finally burst down the road, like any econ 101 student could have warned you about. He mortgaged the future for the now and yet idiots still pat him on the back for his 'success' and bemoan those who were left to clean it up.

[KC Dan]

yeah, that didn't last too long....

The Treasury Department said Wednesday that the deficit grew in February by $203.5 billion. That followed a small surplus of $2.9 billion in January. And February’s gap was $28 billon smaller than the same month a year ago.

http://business.time.com/2013/03/13/...ruary-by-204b/

[patteeu]

Originally Posted by KC Dan

yeah, that didn't last too long....

The Treasury Department said Wednesday that the deficit grew in February by $203.5 billion. That followed a small surplus of $2.9 billion in January. And February’s gap was $28 billon smaller than the same month a year ago.

http://business.time.com/2013/03/13/...ruary-by-204b/

BigRedObamafan was just about to post a thread about this.