budget deficit

Click to Buy? Now, Click to Cheat on Your Taxes

Most people pay their taxes voluntarily, but with at least one type of tax, millions of Americans break the law every year -- and many probably never realize it. Now, states in desperate need of more revenue are trying to do something about that.

Will Budget Battle End With a Tax Increase?

Republicans pushing for spending cuts in the 2011 federal budget may be ready to shut the government down to get their way. But is anyone ready to do what it would take to really make a dent in the federal budget: raise taxes on the rich, close corporate tax loopholes, and cut war spending?

GOP Wins Budget Battle, but May Lose Political War

The Republicans are winning this year%u2019s budget battle: Discretionary spending will decrease. But this is hardly the time for the GOP to take a victory lap: Next, the GOP will have to lower unemployment and improve the average American%u2019s daily life -- two areas where the party has historically come up short.

Congress Passes Spending Bill: GOP Wins First Round of Federal Budget Battle

Right now, everything is coming up roses for the Republican Party: It's won the first round of the budget battle, and if the GOP%u2019s momentum continues, the new federal budget will reflect its spending-reduction priorities, not the Democrats'. Even so, if the two parties can agree on a budget, the greater danger, a potentially market-impacting government shutdown, will have been averted.

Bucking a Trend: Why the Dollar Could Rally in 2011

Despite all the headwinds blowing against it -- and they're fierce -- the U.S. dollar has been holding its own against the world's major currencies. And if the U.S. recovery remains on track, the greenback has good odds of actually strengthening in 2011.

IMF Lays Out the Challenges Ahead for Global Recovery

In its latest report, the IMF applauds national policymakers for stabilizing credit markets and putting the global economy on a recovery track. However, thorny problems remain -- including how to prevent overheating in emerging markets, and how to cut the U.S. deficit while lowering its unemployment rate.

U.S. National Debt Is Huge, but It's Not a Catastrophe

True, the U.S. national debt is large and it should be reduced at some point, but does a large national debt doom a nation to economic ruin? Only if you believe that nations like Germany, France, and Japan are economic basket cases too.

State of the Union: Obama Eager to Fix Health Reform Law

In his State of the Union address, President Obama didn't shy away from tackling the ongoing questions about the health care reform law head on. And though he opened with a joke, he made it clear that while he's serious about repairing any flaws in the law, repeal is not an option.

Tea Party Leaders Say They'd Back Defense Cuts

The Tea Party says everything is on the table regarding its goal to cut federal spending and balance the budget -- including defense spending. If the political faction succeeds in cutting military spending, not only would the U.S. economy benefit, national security could well be strengthened.

Getting to Zero: How Congress Could Balance the Federal Budget

It took about 10 years of decisions for the federal budget to get more than a trillion dollars out of whack, and it's going to take at least five years to balance it again. The only way to do it is piece-by-piece, with equal sacrifices from both Republicans and Democrats.

Eurozone Growth Slows as Austerity Takes Its Toll

Economic growth in the eurozone slowed sharply in the third quarter as austerity measures aimed at cutting budget deficits dented the Continent's recovery. Meanwhile, a growing divergence in the economic performance of EU nations is likely to make it tough for the European Central Bank to set its monetary policy.

Budget Deficit Unexpectedly Narrowed in October

The U.S. government started the new fiscal year on the right foot, posting $140.4 billion deficit in October, the first month of the new fiscal year. That was substantially lower than the $148 billion deficit that had been forecast.

Budget Deficit Falls to $140 Billion

The federal government began the new budget year with a deficit that fell 20 percent from a year ago but still the third highest October imbalance on record. The Treasury Department said Wednesday that last month's deficit totaled $140.4 billion, down by $35.9 billion from the record holder for the month, an imbalance of $176.4 billion in October 2009.

2010 U.S. Budget Deficit Comes in Below Expectations

Investors received another sign Friday that the U.S. economy is continuing to heal: The 2010 U.S. budget deficit came in at a smaller-than-predicted $1.29 trillion. Though it was still the second-highest deficit on record, the numbers reflect growth in tax revenues, and thus in the economy.

10 Signs the U.S. Economy Is Still on Shaky Ground

It has been two years since Lehman Brothers went under, sparking the Great Recession. While the banks have done surprisingly well in past two years, the economy is still struggling to recover and millions remain out of work. Here are 10 charts of key economic indicators to watch.

Budget Deficit Dips More Than Expected

Investors received another slice of good news Monday about the U.S. economy: The federal budget deficit for August totaled a smaller than expected $90.5 billion, thanks to rising government revenues due to higher tax receipts from stronger corporate profits.

Could Congress Eliminate the Federal Budget Deficit?

The annual U.S. budget deficit is well over a trillion dollars, and in the long term, that's unsustainable. But a closer look at the sources of most of that gap shows that balancing the budget wouldn't be nearly as hard as it might at first appear.

Public Debt Could Hurt Growth for Years to Come

Andrew Milligan, the head of global strategy at Standard Life Investments in London, says yes. He says that while short-term fiscal pressures are manageable, "there are significant long-term risks from high levels of public sector debt."

Make the Rich Pay Their Fair Share to Balance the Budget

When George W. Bush cut $1.3 trillion in taxes back in 2002, 36.7% of the money went to the top 1% of Americans. If those tax cuts for the wealthiest are allowed to expire, Republicans could get closer to something they claim to want: a balanced budget. So why are they fighting it so hard?

Fed: Outlook 'Unusually Uncertain'

In testimony on Capitol Hill, Fed Chairman Ben Bernanke said that the central bank is ready to act in an economy that is "unusually uncertain." Bernanke's comments seem to have spooked the markets, which dropped precipitously as he spoke before reversing course.

Why Global Deficit Cutting Could Sink Recovery

For Germany, Britain, and the U.S., three of the world's major economies, their lawmakers' rush to cut budget deficits is the worst thing at this point of the fragile recovery. By taking demand out of their economies at this crucial time, they could spark another recession.

U.S. Deficit is Dangerous, Greenspan Warns

Former Fed Chairman Alan Greenspan has spoken out about U.S. budget deficits, warning that if borrowing isn't reined in, America could face a Greek-style debt crisis. He calls for a "tectonic shift in fiscal policy."

U.S. Deficit Falls to $135.9 Billion in May

May%u2019s smaller-than-expected $135.9 billion budget deficit provided further evidence of a healing U.S. economy, but a large structural deficit remains, and will have to be addressed by Congress, according to one budget observer.

U.S. Shouldn't Let Europe's Debt Crisis Go to Waste

The bond vigilantes have made their presence known in Greece, Spain, Portugal, Italy and Ireland, forcing up their borrowing costs and making slash budgets. The U.S. needs to act now to ensure it's not next.

Recession Causes Second April U.S. Budget Deficit in 27 Years

The federal government posted an $82.7 billion deficit in April, only the second April deficit in the past 27 years. Normally, the month sees a surplus due to the Apr. 15 tax-filing deadline. But the financial crisis has squeezed tax revenue.