National Debt Will Be Cut by Record Amount
- Share via
WASHINGTON — A booming economy that is flooding government coffers with tax revenues will permit the U.S. Treasury to pay down the national debt by a record amount during the current quarter, the agency reported Monday.
The Treasury said it will reduce government indebtedness during the April-June second quarter by $116 billion--surpassing the previous record pay-down of $97.9 billion made during the second quarter last year.
The second quarter includes the April 15 deadline for filing individual income tax returns from the prior year, so it typically yields a flood of money from last-minute taxpayers.
In addition, the agency predicted another pay-down during the third quarter of about $10 billion.
Although the quarterly pay-downs are significant, they represent a small inroad into reducing accumulated government debts that total about $5.5 trillion.
Still, the longer term trend of the government’s debt is downward. Congress has adopted a budget plan that foresees reducing the government’s debt by $1.8 trillion between 2000 and 2009.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
