The U.S. Treasury and the Office of Management and Budget have released the final budget numbers for fiscal year 2013 which ended Sept. 30th. The federal deficit fell from $1.08 trillion in 2012 to $680 billion – a reduction of 37% in one year. Why? More revenue. A stronger economy brought about higher income and payroll tax withholding. Fewer unemployed workers meant smaller payouts of unemployment insurance benefits. And, of course, the sequester helped.
The main conclusion to draw from this significant reduction in our budget deficit is this: Republicans really weren’t justified, after all, to use the Deficit Scare to deny Medicaid health insurance benefits to millions of Americans and to take food out of the mouths of hungry children by cutting their Food Stamp benefits.
Edward Taylor, Mount Gilead, OH