Money Minute: Budget Deficit Shrinks; Obamacare Costs Less

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The nation's budget deficit could fall to less than half of what it was just a few years ago.

The Congressional Budget Office has revised its deficit estimate, mostly because military spending will be less than previously thought. It now projects the deficit will narrow to $492 billion this year. However, the CBO still projects the deficit will turn higher again in 2016.

The CBO report also takes a look at the cost of Obamacare, and finds it will be considerably less than expected. The government is expected to spend $165 billion less over the next 10 years than previously forecast. That's partly because many of the plans have been designed with a narrow list of doctor networks, with low rates of reimbursements.
As a result, the CBO now projects the increase in health care premiums will be slower than expected.

Of course, it's April 15 -- Tax Day, and no one likes to write a check to the IRS. But the wealthy seem especially unhappy this year. For the top 1 percent, the average tax bill will be more than $525,000. The Tax Policy Center says that's up $36,000 from last year, due to higher tax rates and limits on certain deductions.

If there's such a thing as social media jail, USAirways just got locked up. In response to a customer complaint, the company tweeted a response that included a racy picture. It took about an hour for the company to delete it, raising a bit of ruckus in the Twittersphere.

Here on Wall Street, the Dow Jones industrial average (^DJI) rallied 146 points yesterday, the Nasdaq composite (^IXIC) rose 23 and the Standard & Poor's 500 index (^GPSC) added 15 points.

Finally, Google (GOOG) has agreed to buy Titan Aerospace, the maker of solar-powered, high altitude drones that can fly for years at a time. The drones have the potential to bring internet access to millions of people in remote areas around the globe. It also collects images that could help Google maps.

-Produced by Drew Trachtenberg.


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Adele Roberson

Grand total Debt "owned" by Reagan, Bush & Bush ..........................$12. 406 Trillion

There you have it - over 85% of the national debt is completely due to 3 Republican presidents.
This analysis is mostly from zFacts.
Data sources: Treasury Direct 1, Treasury Direct 2, Recovery.gov

April 16 2014 at 7:02 PM Report abuse rate up rate down Reply
Adele Roberson

Poor stupid posters on this site. They actually do think they have better information than DAILY FINANCE. Now that is an ego I would not want to have. All Republican Nutcakes - living in eternal denial.

April 16 2014 at 6:53 PM Report abuse rate up rate down Reply
thomashollman19

This bull$hit article was contrived to shed a halo over the idiots that voted for this HEALTHCARE MONOPOLY in the first place .Now the voters will vote them out of office this fall and good ridense.In 2016 we get to flush the long overdue toilet of a whithouse / vote out the democrats that are spending the money of our grandkids / fumigate / start over

April 15 2014 at 8:14 PM Report abuse rate up rate down Reply
1 reply to thomashollman19's comment
teapartyisdying.uall

Reagan tripled our national debt and Bush doubled our national debt. They already spent our grandkids money.

April 16 2014 at 5:00 AM Report abuse rate up rate down Reply
2 replies to teapartyisdying.uall's comment
thomashollman19

FUMIGATE /START OVER

April 16 2014 at 8:50 AM Report abuse +1 rate up rate down
progressivehoax

Now your hero raised it 7 trillion. Next

April 16 2014 at 8:59 AM Report abuse rate up rate down
floatgod

SHrinking the budget means nothing (except to Democrats). Let's talk whe you shrink THE NATIONAL DEBT! Saying you just saved $1,000 while you put $10,000 more on your credit card, is the same as saying the Gov't shrank the budget. You must also consider WHAT YOU OWE!

April 15 2014 at 8:01 PM Report abuse rate up rate down Reply
kd485

"That's partly because many of the plans have been designed with a narrow list of doctor networks, with low rates of reimbursements." Just wait till people who bought these plans go to use them! Supprise!

April 15 2014 at 5:18 PM Report abuse rate up rate down Reply
kd485

Obamacare is going to cost less than expected, the insurance is worse than they expected and not going to cover as much as they thought!

April 15 2014 at 4:58 PM Report abuse rate up rate down Reply
stevemontani

My God does anybody believe any numer taht comes out of the government?

April 15 2014 at 4:49 PM Report abuse +1 rate up rate down Reply
pat

I don't believe anything coming out of this corrupted government

April 15 2014 at 4:26 PM Report abuse +1 rate up rate down Reply
1 reply to pat's comment
teapartyisdying.uall

What about corrupted Corporate America who seeks to over charge you for healthcare.

April 15 2014 at 4:47 PM Report abuse rate up rate down Reply
3 replies to teapartyisdying.uall's comment
DJ'S

Obama-me - COOKING THE BOOKS. This ADMINISTRATION Is VERY EXPERIENCED at CORRUPTION , of COOKING THE BOOKS and LIES.

April 15 2014 at 4:03 PM Report abuse +2 rate up rate down Reply
alamaden

Cost less than we thought HP??? does that includ the 20 trillion dollar mortage into the buying power of the " dollar"... ??? while you support a basic retard that not everyone in this country can take 20 million dollar vacations on the tax payers dime or send their wife and mother in law to Paris on the tax payer time to go shopping at a cost of 30 to 40 million dollars.... and you whine about the minimum wage going up 2 bucks an hour when these kids or whomever can't even afford to pay for a gallon of gas..... Is this Economics 101 or Home Economics with burnt fried chicken???

April 15 2014 at 3:36 PM Report abuse +3 rate up rate down Reply