Rising tax revenue shrinks deficit
WASHINGTON- Higher tax receipts helped shrink the federal deficit to less than half of what is was a few years ago but that's a double-edged sword according to economists. The shrinking deficit will shape the debate in Congress next month to continue, end or modify billions of dollars in automatic government spending cuts. Some economists worry the higher tax revenue and the shrinking deficit will relieve pressure on policymakers in addressing the nation's long-term debt problem and they'll kick the can down the road. The government runs out of money on September 30 and a temporary resolution is likely to pass Congress to keep the government from shutting down. Tax receipts through June are up 14% over last year and July's figures come out next week. The August numbers come out after Congress returns from its summer recess on September 9.