Tag Archives: budget surplus

This Could Be The Start Of Something Big!

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On Friday, CNBC reported the following:

  • With government red ink swelling throughout the year, June saw a surplus of just over $27 billion, following a $316 billion deficit in May.
  • Customs duties totaled about $27 billion for the month, up from $23 billion in May and a 301% gain from June 2024.

CNBC notes:

That brought the fiscal year-to-date deficit to $1.34 trillion, up 5% from a year ago. However, with calendar adjustment, the deficit actually edged lower by 1%. There are three months left in the current fiscal year, which ends Sept. 30.

A 13% increase in receipts from the same month a year ago helped bridge the gap, with outlays down 7%. For the year, receipts are up 7% while spending has risen 6%.

The government last posted a June surplus in 2017, during President Donald Trump’s first term.

Increasing tariff collections are helping shore up the government finances.

Customs duties totaled about $27 billion for the month, up from $23 billion in May and 301% higher than June 2024. On an annual basis, tariff collections have totaled $113 billion, or 86% more than a year ago.

The article notes that the interest on the debt is a major budget item:

Net interest on the $36 trillion national debt totaled $84 billion in June, down slightly from May but still higher than any other category with the exception of Social Security. For the year, net interest — what Treasury pays on the debt it issues minus what it earns on investments — is at $749 billion. Total interest payments are projected at $1.2 trillion for the full fiscal year.

Lowering interest rates would bring down that cost.

Please Export This To America

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On Saturday, The Geller Report reported that for the first time in 123 years, Argentina does not have a budget deficit! They actually have a surplus.

The article reports:

Under Milei’s leadership, Argentina turned a $7.94B trade deficit in 2023 into a record-smashing $18-19B surplus in 2024, surpassing the previous high of $16.89B in 2009.

The article quotes Reuters:

Jan 17 (Reuters) – Argentina brought in its first budget surplus in more than a decade in 2024, data published on Friday showed, marking a win for libertarian President Javier Milei and his sweeping austerity push in his first full year in office.
The nation’s budget surplus came in at 1.76 trillion pesos, or 0.3% of gross domestic product (GDP) in the full year, the economy ministry said. Meanwhile the primary fiscal balance, which excludes debt payments, was up to a 10.41 trillion peso surplus, or 1.8% of the GDP.

So it is possible. Keep in mind that the media did everything it could to keep Milei from being elected. He is popular with the people but not with the media or the previous government establishment. He has done in Argentina exactly what needs to be done in America.

The Impact Of The Tax Cuts

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On Monday, The Washington Times posted an article about a Congressional Budget Office report on April tax revenue.

The article reports:

The federal government took in a record tax haul in April en route to its biggest-ever monthly budget surplus, the Congressional Budget Office said, as a surging economy left Americans with more money in their paychecks — and this more to pay to Uncle Sam.

All told the government collected $515 billion and spent $297 billion, for a total monthly surplus of $218 billion. That swamped the previous monthly record of $190 billion, set in 2001.

CBO analysts were surprised by the surplus, which was some $40 billion more than they’d guessed at less than a month ago.

It will be interesting to see if the CBO changes its predictions on future deficits as tax revenues increase.

The article further states:

April is always a strong month for government finances, with taxpayers filing their returns for the previous year and settling up what they owe, even as expenditures often dip for the month.

But this year was particularly strong, with receipts jumping 13 percent compared to a year ago.

The news couldn’t come at a better time for President Trump and congressional Republicans, who were facing major questions about the damage last year’s tax-cut package might do to future deficits. Just a month ago the CBO projected that the deficit would quickly soar back to $1 trillion a year.

The deficit is a problem and will be a problem in the future. Hopefully the rescissions package that President Trump sent to Congress will pass (article here), and Congress will begin to trim the out-of-control spending it is accustomed to. Our future depends on it–we are not undertaxed–Congress is overspending.