U.S. tax receipts improving, less deficit

WASHINGTON, Oct. 11 (UPI) -- The amount of federal taxes relative to the overall economy has dropped to their lowest level since Dwight D. Eisenhower was president in the 1950s.

The Congressional Budget Office said the deficit for fiscal 2003, at the close of Sept. 30, was $374 billion, or $27 billion less than the CBO forecast in August, but without the improving economy the deficit would have been larger.

"It's early to celebrate, but there are indeed hopeful signs," said White House Budget Director Joshua B. Bolten.

Tax receipts, including corporate taxes, came in stronger than forecast indicating improving corporate and personal incomes, while there was less spending than forecast for welfare payments, health care and unemployment benefits, the Washington Post reported.

However, CBO Director Douglas J. Holtz-Eakin said there are still too many questions about the recent increase in tax receipts to make conclusions and that CBO's August projection of deficits totaling $1.4 trillion between 2004 and 2013 remains.