Saturday, January 15, 2005

Psst, the Deficit Is Shrinking - Larry Kudlow

I'm really surprised by the fact that we haven't heard this in blaring above the fold headlines or in news feeds across cable news or network news or from a nonstop whining of Democrats. NOT. Why on earth would anyone want to report the truth and good news all at the same time. Why, that would wrong, just plain wrong.

At this pace, the 2005 deficit is on track to drop to $355 billion from $413 billion in fiscal year 2004. As a fraction of projected gross domestic product, the new-year deficit will descend to 2.9 percent compared with last year’s deficit share of 3.6 percent.

But there’s not a single report I can find that mentions the sizable narrowing in U.S. fiscal accounts. Behind this really big budget story is the even-bigger story: The explosion in tax revenues has been prompted by the tax-cut-led economic growth of the past eighteen months.

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