Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

A Revenue Surge That Caught The Omb By Surprise


Economic Trends

A REVENUE SURGE THAT CAUGHT THE OMB BY SURPRISE

Disclaimers to the contrary, there's evidence that the strength of the economy in the third quarter was as much of a surprise to the Bush Administration as it was to the Democrats. In late July, just two months before the end of the fiscal year, the Office of Management & Budget projected the fiscal 1992 federal deficit at $333.5 billion--a number that proved some $43.3 billion too high.

Economist John Youngdahl of Goldman, Sachs & Co. notes that one major reason omb missed the boat was its underestimation of corporate and individual tax revenues and of payroll-tax receipts. Corporate taxes came in $6.1 billion above projections, while payroll taxes and personal income taxes were $7.7 billion above the late July estimate. "The third-quarter jump in tax receipts," says Youngdahl, "indicates that the economy's surge was both real and apparently unexpected."GENE KORETZ


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus