Rep. Boozman Hails Good Economic News
Rep. Boozman Hails Good Economic News
Revised deficit estimate drops by $94 billion
Washington, Jul 13 - U.S. Representative John Boozman (R-AR) today hailed the news of the Office of Budget Management's (OMB) announcement that the deficit estimate for FY05 has dropped by $94 billion.
"Today's news is proof that our fiscal policies are working," said Boozman. "Now, opponents of tax relief can no longer say with a straight face that tax cuts will not stimulate the economy."
Boozman continued, "We are seeing incredible growth as a result of a pro-growth economic plan that President Bush proposed and I supported in Congress. By giving people more money to spend, we have created more jobs and that is evident by a series of positive payroll reports and today's news of the drastic reduction to the deficit estimate."
OMB estimates released today were included in the supplemental update of the budget which the president is required by law to submit to Congress. According to that report, the deficit is now forecast to fall from $412 billion, or 3.6 percent of GDP in 2004, to $333 billion in 2005, 2.7 percent of the GDP. At its currently forecast level, the U.S. budget deficit for 2005 would be smaller than the deficits in 15 of the last 25 years. Strong revenues have sparked the decrease in the deficit.
In addition to today's reported decline in the deficit, June's payroll report showed that 146,000 jobs were created last month while the unemployment rate fell to 5.0 percentthe lowest since September 2001. The unemployment rate is down from its peak of 6.3 percent in June of 2003. 3.7 million jobs have been created since May of 2003, and June marked the 25th straight month of job creation.
http://www.boozman.house.gov/News/DocumentSingle.aspx?DocumentID=30499