This week’s Treasury report on the nation’s finances for December shows a year-to-date fiscal 2005 deficit that is already $11 billion less than last year’s. In the first three months of the fiscal year that began last October, cash outlays by the federal government increased by 6.1 percent while tax collections grew by 10.5 percent. When more money comes in than goes out, the deficit shrinks.
At this pace, the 2005 deficit is on track to drop to $355 billion from $413 billion in fiscal year 2004. As a fraction of projected gross domestic product, the new-year deficit will descend to 2.9 percent compared with last year’s deficit share of 3.6 percent.
Here's the original article. Look, I know it's just newsmax, but you should be looking at the regular media on this one closely. Is anyone even talking about this? It this just another propagandist lie? Or is the whole theory about increasing taxes to decrease the deficit a crock?
UPDATE: Here's some verification, all the way from China: Xinhua
UPDATE2: ...and SeattlePI