Cutting deficits down to size

Since January 2011, a debate over record budget deficits has dominated Washington, leading to a series of agreements to raise taxes and cut spending. But nearly half the improvement in the budget outlook is due to other factors, including lower-than-expected health care costs and an improving economy. Meanwhile, the bulk of savings from the budget deals comes from lower war costs, as well as caps on agency budgets that are already proving difficult to sustain. Read related article.