back June 10, 2005 CBO Numbers Show Shrinking Deficit, Growing Tax Revenues The Congressional Budget Office’s (CBO’s) monthly budget review, released this week, showed a decline in the year-to-date deficit and strong growth in tax revenues. According to CBO estimates, as of May, the eighth month of the fiscal year, the cumulative deficit stood at about $273 billion – down $73 billion from the same period in 2004. Significantly, for the first eight months of fiscal year 2005, CBO estimates that revenues have increased by $183 billion, or 15%, compared with receipts in the same period of 2004. At the same time, outlays have grown by $110 billion, or 7%.  Even more specifically, individual income tax receipts are up 20.5% so far this fiscal year, compared to this point during the last fiscal year, while corporate income tax payments are up 47.5% over the same period.  Wisconsin’s First District Congressman Paul Ryan today commented on the CBO report, stating: “These numbers reinforce what we’ve seen historically – that pro-growth tax relief leads to higher tax revenues. When paired with spending restraint, this can help shrink the deficit. The broad-based tax relief that Congress passed is bearing fruit, but we must do even more to strengthen our economy and keep a lid on federal spending.”   Print Contact: Kate Matus (202) 226-7326