Federal government shows a budget surplus

PLC1

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at least for the month of June. Surprised? I know I was. Will it last? Good question.

U.S. June budget surplus $117 billion


WASHINGTON (MarketWatch) - The U.S. federal government ran a budget surplus of $117 billion in June, the Treasury Department reported Thursday, as receipts rose and spending fell compared to the same month a year ago. For the fiscal year to date, the deficit is $510 billion, 44% less than the shortfall recorded in the same period last year,
 
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at least for the month of June. Surprised? I know I was. Will it last? Good question.

U.S. June budget surplus $117 billion

If you are asking if we will run a surplus every month, the answer is a clear no. If you are asking if we will have months where we run a surplus then the answer is a clear yes.

Now, as to the reasons behind this, we can of course debate them.
 
If you are asking if we will run a surplus every month, the answer is a clear no. If you are asking if we will have months where we run a surplus then the answer is a clear yes.

Now, as to the reasons behind this, we can of course debate them.
Yes we can.. debate them I mean.. when I have more time...
 
How do you have a surplus with 17 trillion debt and Bernanke printing 85 billion a month? Sounds like another magical number coming out of the government.
 
How do you have a surplus with 17 trillion debt and Bernanke printing 85 billion a month? Sounds like another magical number coming out of the government.


Not really so magical. A bit misleading, perhaps, but no magic is needed. Imagine a family that has credit cards maxed out and no savings. In the month of June, they were able to pay the minimums on the cards, pay all of the bills, and still have a bit left over. They aren't exactly fiscally sound as yet, but are moving in the right direction for now.
 
Not really so magical. A bit misleading, perhaps, but no magic is needed. Imagine a family that has credit cards maxed out and no savings. In the month of June, they were able to pay the minimums on the cards, pay all of the bills, and still have a bit left over. They aren't exactly fiscally sound as yet, but are moving in the right direction for now.

Yes, but that family only did it as breadwknner got a bonus. Uncle Sam got a spike from thr irs deadline like they do every year.

Its meaningless.
 
Yes, but that family only did it as breadwknner got a bonus. Uncle Sam got a spike from thr irs deadline like they do every year.

Its meaningless.

That and an improving economy.

From the link in the OP:

In June last year, the government posted a deficit of $60 billion.

Why didn't it get the same bonus last year?
 
If there is no improving economy, and taxes are the same as they have been, and the government hasn't stopped spending, why did the deficit go down?

already answered once. but you do point out that taxes are up this year so you have answered it yourself.
 
when did tax rates go up?

This past January, along with everything else.

The top marginal tax rate went from 35% to 39.4%
Phase out of personal exemptions, limits on deductions and social security went from 4.2% to 6.2%.
Also, capital gains went from 15% to 20%.
 
This past January, along with everything else.

The top marginal tax rate went from 35% to 39.4%
Phase out of personal exemptions, limits on deductions and social security went from 4.2% to 6.2%.
Also, capital gains went from 15% to 20%.


the top marginal tax rate went back up.
So did payroll taxes.

Then, is it accurate to say that those tax cuts are the cause of the deficit?
 
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the top marginal tax rate went back up.
So did payroll taxes.

Then, is it accurate to say that those tax cuts are the cause of the deficit?

Keep in mind that the government got a massive capital gains tax boost from last year that is unlikely to repeat itself, and also I believe it was Fannie Mae that paid $60 billion to the government at the beginning of June.
 
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