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Here's something to fight about: The federal deficit for the 2012-2013 budget year dropped to $680 billion — the lowest level since the recession.

The Associated Press reports:

The government says the deficit for the 2013 budget year totaled $680.3 billion, down from $1.09 trillion in 2012. That's the smallest imbalance since 2008, when the government ran a $458.6 billion deficit. The deficit is the gap between the government's tax revenue and its spending. It narrowed for the budget year that ended on Sept. 30 because revenue rose while spending fell.

Both political parties can have fun with this one, thanks in part to that last line. But before we offer you our helpful cocktail hour talking points, here's what the drop looks like.



That's just the deficit since 1980. In the late 1990s, the federal government's revenue (mostly taxes) was larger than its outlays, yielding a surplus. That used to be the norm. Here, via the Federal Reserve, is the surplus or deficit since 1900. Important note: This is not adjusted to 2012 dollars.

