December 18, 2014

Deficits Falling (From Way Up)

August 1, 2013
FactCheck.org

Excerpt

Joshua Gordon, policy director of the Concord Coalition, a nonpartisan, grassroots organization that seeks to educate the public about federal budget issues, told us that regardless of the wording, it’s a fact that the deficit is dropping rapidly. . . .

But Gordon warns not to give too much credit to Obama or Congress for the drop in the deficit. That’s mostly due to the growth — albeit slow — of the economy, bringing the government more revenue than expected, he said. The CBO says the increased revenue is also due to tax increases, most notably the expiration of the payroll tax cut and the higher rates enacted on upper-income taxpayers.

“That’s allowing deficits to come down,” Gordon said. “The deficit is not shrinking only, or even mostly, because of the actions of Congress or the president.”

Nor has Obama or Congress taken action to solve the long-term deficit crisis facing the nation due to an aging population that will cause the cost of programs like Social Security and Medicare to soar in coming decades.

“They are reducing the deficit in the short term, but the drivers of the long-term increases in the deficit have not been substantially altered by any action of the president or Congress,” Gordon said.