This is getting tedious, but a blog's gotta do what a blogs's gotta do. Republicans, you're wrong again. Wrongier than wrong. Wrong wrong wrong:
— Steve Benen (@stevebenen) August 27, 2014
The federal deficit continues to decline thanks to budget cuts and slower growth in Medicare costs, but lower than expected corporate tax revenues dimmed some of the improved outlook, according to a report Wednesday from the Congressional Budget Office.
This remains a basic budgetary truism that Republicans continue to resist. Indeed, last year, when top marginal rates increased on households making more than $400,000 a year, a variety of GOP lawmakers argued that this would likely cause the deficit to go up – as they saw it, higher taxes on the wealthy would slow growth, which would mean fewer jobs, which would mean fewer people paying income taxes, which would mean a larger deficit.
And we now know they were wrong – again – though this will probably do nothing to shake the Beltway perception of the GOP as the “fiscally responsible” party.
Let’s also note that the shrinking deficit – we’re seeing the fastest reduction since the end of World War II – is also one of the nation’s best-kept secrets. [...] [T]he reality is, we’re witnessing deficit reduction at a truly remarkable clip. Every conservative complaint about fiscal recklessness and irresponsibility in the Obama era is completely divorced from reality.
Per the most reliable news source in the whole wide world, Fox Biz, comes this upbeat news via a couple of email alerts:
The number of Americans filing for first-time unemployment benefits fell last week to 298,000 from an upwardly revised 299,000 the week prior. Economists expected claims to rise to 300,000 from an initially reported 298,000.
The Commerce Department reports the economy expanded at an annualized pace of 4.2% in the second quarter, higher than an original estimate of 4%, also beating expectations of 3.9%.