This becoming a real pain-in-the-butt for the Republican Tea Party deficit peacocks. The President's Office of Management and Budget has released its update on the budget, and they estimate the deficit this year to drop to $759 billion, $214 billion below the estimate included in the president's original budget. The OMB's Sylvia Burwell put the president's record in stark relief against the deficit peacocks in Congress who sit there all day figuring out ways to be even less productive than the least productive Congress on record. Burwell writes:
The MSR [Mid-Session Review] shows that the projected deficit in 2013 has decreased by more than $200 billion as compared to the projection included in the Budget. The 2013 deficit is now projected to be 4.7 percent of GDP. That is down from a deficit of 10.1 percent four years ago – representing the fastest period of deficit reduction since the years immediately following World War II.
Going forward, the MSR shows that, under the President’s Budget, deficits will be reduced to below 3 percent of GDP by 2017 and continue to fall to about 2 percent in 2023.Importantly, the MSR also shows that the Budget achieves a core goal of fiscal sustainability by putting Federal debt on a declining path as a share of the economy.
This, of course, does not include an estimate of how much revenue we are missing out on because ofthe sequester. Even in the sequester's "best-case" scenario, it contributed about a fifth of the reduced estimate. Looked at another way, if the sequester were averted, and no revenue whatsoever were generated from the economic activity, the deficit would have been a mere 5% bigger. That is the GOP's "big idea."
(CLICK PIC TO CONTINUE READING)