January 12, 2007
HP-224

U.S. Fiscal Outlook Improves Significantly in December
Fiscal Year to Date Deficit Down;
Monthly Surplus Up More than 300 Percent

"Today's monthly Treasury statement shows that tax receipts have reached a new record and that we are moving in the right direction toward a balanced budget by 2012. This good news reflects the strong state of our economy. The President's tax relief has helped make this possible by creating the conditions for sustained economic growth and job creation."
                  - Assistant Secretary for Economic Policy Phillip Swagel

Highlights:
The Fiscal Year to Date deficit ($80 billion) is down 33 percent ($39 billion) compared to the same period last year.  The President's tax relief has stimulated strong economic growth. This strong growth has contributed to record-level receipts and the creation of more than 7.2 million jobs since August 2003.  October to December receipts for FY 07 are at $574 billion, running 8 percent ($43 billion) higher compared to the same period for FY 06.

December brought record-level monthly tax receipts ($260 billion) and a record-level surplus ($45 billion) for the month.  The monthly surplus was up 306 percent ($34 billion) compared to December 2005 ($11 billion). 

December 15 brought the largest ever single day corporate tax receipts ($73 billion).  This broke the previous record set in September 2006 ($72 billion).

Maintaining low tax rates will help ensure continued economic growth, lift Americans living standards, and enable us to address our longer term fiscal challenges from a position of economic strength.