Budget Deficit Narrows on Higher Income-Tax Revenue
WASHINGTON--The federal budget deficit appears to be narrowing slowly, with the biggest improvement since the financial crisis, as corporate and individual income taxes rise thanks to the rebounding economy.</br></br>The Treasury Department reported Wednesday that it collected $171 billion in taxes and other revenue last month, the highest March tally since 2008, when Bear Stearns was acquired at a government-run fire sale by J.P. Morgan Chase & Co.</br></br>Individual income-tax revenue from October through March, the first half of the government's 2012 fiscal year, hit $484.1 billion, up from $475.6 billion in the year-earlier period. Corporate income taxes rose to $84.5 billion from $55.1 billion a year earlier. The higher tax revenue helped shrink the six-month deficit to $778.8 billion this year, $50 billion lower than the year before.</br></br>Tax revenue has been slow to recover since the financial crisis, and its sluggishness has been one driver of wide deficits in recent years. Monthly government tax and spending data can fluctuate widely, and the deficit could swell again if the recovery falters.</br></br>The April data will prove a key indicator of the government's fiscal health since many Americans wait until the last minute to file their tax returns.