The FY2014 federal budget deficit fell 29% to $483.35 billion or 2.8% of GDP, the lowest percentage since FY2007. Revenues rose 9% to $3.021 trillion, due to higher incomes and higher tax rates that went into effect 1/1/13. Outlays rose 1% to $3.504 trillion. While good news, don’t celebrate. We have a five year window before things start worsening due to demographics leading to rising Medicare and Social Security payments.