Budget Deficit Declines to 2.7% of GDP

The estimate for this year's budget deficit was reduced to $333 billion, lower than the $427 billion originally forecast. The OMB estimates revenue to rise 14 percent for the year, which would be the highest increase in 25 years. But this should come as no surprise to knowledgeable (read: non-Keynesian) economists.

Imagine if we cut rates further and reduced spending. We would have a surplus within two years!