Stronger Economy Cited as U.S. Reports Lowest Budget Deficit of Obama’s Tenure
WASHINGTON — The federal budget deficit fell this year to its lowest level since President Obama took office, his administration reported Thursday, a change propelled by an increase in tax receipts amid a strengthening economy.
The deficit was $439 billion in the 2015 fiscal year, $44 billion less than last year, the Treasury Department and the Office of Management and Budget said in a report. The shortfall represents 2.5 percent of the economy, the lowest share since 2007.
“Under the president’s leadership, the deficit has been cut by roughly three-quarters as a share of the economy since 2009 — the fastest sustained deficit reduction since just after World War II,” Treasury Secretary Jacob J. Lew said in a statement released with the figures. The deficit ballooned to $1.4 trillion in 2009, in part because of stimulus spending during the recession.
Government receipts rose by 8 percent over the last year, the report said, which “can be attributed to a stronger economy.” Rising wages drove up collections of individual and payroll taxes, and higher corporate profits led to an increase in business income tax receipts. Also, fees and payments under the Affordable Care Act that took effect in 2015 helped increase federal collections.
The administration cheered the figures as vindication of Mr. Obama’s economic policies and as proof of the resurgence he set in motion after taking office during the depths of the recession.
But the good news came amid uncertainty over whether the White House would be able to strike a budget deal with Republicans to keep the government functioning beyond a December deadline. The administration is also trying to garner support to raise the debt limit before Nov. 3, the date when Mr. Lew said the government would exhaust its ability to borrow.
Mr. Lew, in a letter to lawmakers hours before the deficit numbers were released, moved up by two days his initial estimate of when the statutory borrowing limit would be reached. By Nov. 3, he said, the government would have to resort to “extraordinary measures” to meet federal obligations.
Fiscal hawks called the deficit numbers a positive sign, but they cautioned that the improvement would probably be fleeting. The Congressional Budget Office has projected that deficits will begin to rise again in 2017 if fiscal policies are not overhauled.
Maya MacGuineas, the leader of the Campaign to Fix the Debt, called Thursday’s report “good news,” adding, “Now the bad news: This may well be the lowest it will be for a long time.”
http://www.nytimes.com/2015/10/16/us/politics/stronger-economy-cited-as-us-reports-lowest-budget-deficit-of-obamas-tenure.html?_r=0
YOU'RE WELCOME
ALL HAIL OBAMA!
The GOP’s entire identity is based on a lie: How the Obama presidency exposed Republican deficit
delusions
Fox News and the broader conservative ecosystem erupted in a coordinated effort to paint the Democrats as frivolous spenders, handing out free stuff to everyone without bothering to discuss how they’d pay for it. However, the irony of this attack is thick, given how the Democrats have taken up the burden of fiscal responsibility in the modern era. The Republican Party has no choice but to dig deeply into the history books to find the last GOP president who actually bothered to leave the deficit in better shape than when he was inaugurated. Meanwhile, President Obama, like President Clinton before him, has seen the federal budget deficit fall by record numbers.
According to a new report from the Wall Street Journal’s Market Watch site, the federal government ran up a deficit of $439 billion for the 2015 fiscal year. That’s 2.5 percent of GDP, which is the lowest level since 2007. Why is this significant? The Obama administration inherited a $1.4 trillion (with a “t”) budget deficit — driven in large part by stimulus spending meant to combat the financial crisis — which authorized George W. Bush in October 2008.
Since then, Obama has presided over a gradual $1 trillion-dollar reduction in the deficit. Insofar as deficit reduction is important — and remember, according to the rhetoric of the GOP over the past several years, it is very important — this is a massive achievement for the Obama administration. Massive. And neither he nor the Democrats will get any credit for it.
http://www.salon.com/2015/10/16/the_gops_entire_identity_is_based_on_a_lie_how_the_obama_presidency_exposed_republican_deficit_delusions/
