As the budget battles in Washington begin anew, it seems the importance of tax revenue for repairing the national debt problems has been quite clearly illustrated. It’s also worth postulating, with the regaining of virtually all the jobs lost under the Obama Administration does it not stand to reason that putting people back to work where they contribute to the tax base is the best way to reduce the debt spending? Would it not be a wiser choice for Republicans from the local, state & federal levels to heed this logic, halt their attempts to slash everything to the bone and instead focus on job creation through investment in the country’s future? It would seem the strategy subscribed to by the Obama Administration and the Democrats in Congress has, and is, working. Is it not time for the GOP to swallow a bit of pride, acknowledge this reality and come together to continue down the past to recovery rather than hindering as has been the case for the past 3 1/2 years?
By Michael Ono | ABC OTUS News
The Congressional Budget Office has reported a monthly budget surplus of $58 billion, which would be a first in nearly three years.
The improved numbers are attributed to a 10 percent increase in tax revenue. The month of April coincides with tax season which typically results in a yearly surplus, but hasn’t happened since the 2008 financial crisis when tax revenue fell.
“It is a clear signal that the government’s fiscal situation is finally moving definitively in the right direction,” said Mark Zandi who is the chief economist for Moody’s Analytics.
Next month’s report will likely show a budget deficit, but the small surplus is an important milestone in the nation’s struggle to fend of a future debt crisis.
Some economists argue that a rush to curb the deficit through immediate spending cuts could harm the economy in the short term. Britain recently announced that it fell back into recession, with some blaming the drop in gross domestic product on harsh austerity measures.
“It goes to how important economic growth is to addressing our fiscal problems,” said Zandi.
The other school of thought says that a massive budget deficit is too risky because the interest on the debt could grow to become unmanageable.
Lawmakers will likely have to find a way to cut the deficit over the long run.
“Policymakers have a lot more work to do to establish fiscal sustainability,” said Zandi.
The conventional wisdom is that Congress will address the long-term problem after the election is over.
Referenced from YahooNews!