Maybe things aren't as bad as some claim, after all. It looks like those tax cuts are working, too. We're in a war-spending situation and the tax cuts are STILL increasing government revenue.'s_Most_Pop ular

The Shrinking Deficit

The Congressional Budget Office has released its preliminary estimates for Fiscal Year 2007 that ended September 30, and the federal budget deficit fell again, this time by 35% to $161 billion.

Since 2004, deficit spending has tumbled by $251 billion, which is one of the most rapid three-year declines in U.S. history.

The budget surplus was about $113 billion in September, CBO estimates, $57 billion more than the surplus recorded in the same month last year. The government typically runs a surplus in September because of the influx of revenues from quarterly tax payments.

CBO estimates that the federal deficit was about $161 billion in 2007, down from $248 billion in the previous year.