Revenue Generation Hits Surplus of Billions

Last updated on May 14, 2013

The Obama administration has been working to increase revenue through increasing taxes. For 2013, the month of April brought good news for them, as it made a record for revenue generation. The U.S. Treasury received a surplus of $113 billion for the month, which is the since 2008.

The policy of increased revenue generation, coupled with cuts in government spending, is a strategy expected to bring results. Judging from the slow, but steady growth of the economy, the policy of the Obama administration may be effective in controlling the deficit in the short term.

There have also been talks of increasing the borrowing limit because, the deficit remains enormous and is still expected to grow, even with April’s surplus.

Even though the decision about how to lower the deficit might include more than one solution, it is a relief to an economy that has seen steady growth. Policymakers and politicians, meanwhile, receive additional time to draft effective solutions to tackle the deficit.

Some of the results of the economic crisis, such as IRS’ aggressiveness in tackling tax evasion may prove to be fruitful in the long-term with keeping the tax system effective and enforceable. At present, the April surplus is making headlines, possibly an indication towards healthier economic growth.