The Congressional Budget Office has revised its deficit forecast for this year by $200 billion, dropping its estimate to $642 billion, putting the budget on track for its smallest deficit since 2008 when the economic crash reduced tax revenues and spurred stimulus spending.
The CBO credited an increase in tax revenues along with a cash return from mortgage giants Fannie Mae and Freddie Mac.
Additionally, they predict the deficit will continue to shrink to below 3 percent of the entire economy within the next two or three years, a point generally considered as economically sustainable. This has led some analysts to suggest high deficits are a thing of the past.
Host Carmen Russell-Sluchansky spoke with Mark Rom, professor of government at Georgetown University, to discuss what this means.