Budget Office Raises Deficit Estimate for Fiscal Year to $506 Billion - New York Times

The federal deficit is expected to reach 506 billion dollars this current fiscal year. In April the Congressional Budget Office estimated that the deficit would only reach 492 billion dollars.The Congressional Budget Office projected Monday that the 2014 shortfall will decline to 2.8% of GDP  or $492 billion. That's about $23 billion below what the CBO forecast just a few months ago. And it's well below the 4.1% or $680 billion recorded last year.

The Congressional Budget Office was completely off with their estimation of being only 492 billion dollars in debt. One of the reasons why they were so incorrect was because of the lower than expected corporate income tax. With the corporate tax rate up to 35% you would think America's corporate income tax would be high, but that is not the case.

Many large American corporations like Pfizer, a pharmaceutical corporation headquartered in New York City, are considering moving their headquarters elsewhere to avoid the country's large corporate income tax. Pfizer will likely move they're headquarters to England where the corporate income tax is as low as 20%. I think America needs to do something about these large corporations that generate huge amounts of income for this country. I don't think lowering the tax on these corporations is the answer. There needs to be an initiative for the corporations to stay put.

Up until recently companies that moved out of the country were kicked out of American stock's index. Because of this companies were forced to move to smaller firms which lowered the share price hurting the company. In order to gain revenue for this country I think its important for the big corporations to stay. So going back to the way things were would be a great idea in my opinion.


 http://www.nytimes.com/2014/08/28/us/politics/budget-office-raises-deficit-estimate-for-fiscal-year-to-506-billion.html?ref=business&_r=0