The U.S. Is Cutting its Deficit Faster Than it Ever Has Before

larry1235/Shutterstock.com

The latest US budget statement is due at 2 p.m. ET on August 12, and is expected to show that the US deficit continued to decline in July, falling to a consensus -$90.5 billion. That’s still in the red, to be sure. But it’s worth noting just how sharply US deficits have been declining. Check out this chart from economists over at Barclays.

How has the US done it? No giant mystery here: Spending has been falling and government tax revenue has been rising.

Ok, but why, exactly? Barclays economists say tax receipts are rising largely because of better individual tax revenue. And those are improving for a few reasons. Worker incomes are up a bit thanks to improvements in the job market. Taxes on capital gains from the buoyant US stock market are also helping. And then there’s the fact that tax rates rose thanks to the budget deal cobbled together with Congress late last year

Read more at Quartz

(Image via larry1235/Shutterstock.com)

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download
  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care

    Download

When you download a report, your information may be shared with the underwriters of that document.