Money Minute: Budget Deficit Shrinks; Obamacare Costs Less


The nation's budget deficit could fall to less than half of what it was just a few years ago.

The Congressional Budget Office has revised its deficit estimate, mostly because military spending will be less than previously thought. It now projects the deficit will narrow to $492 billion this year. However, the CBO still projects the deficit will turn higher again in 2016.

The CBO report also takes a look at the cost of Obamacare, and finds it will be considerably less than expected. The government is expected to spend $165 billion less over the next 10 years than previously forecast. That's partly because many of the plans have been designed with a narrow list of doctor networks, with low rates of reimbursements. %VIRTUAL-article-sponsoredlinks%As a result, the CBO now projects the increase in health care premiums will be slower than expected.

Of course, it's April 15 -- Tax Day, and no one likes to write a check to the IRS. But the wealthy seem especially unhappy this year. For the top 1 percent, the average tax bill will be more than $525,000. The Tax Policy Center says that's up $36,000 from last year, due to higher tax rates and limits on certain deductions.

If there's such a thing as social media jail, USAirways just got locked up. In response to a customer complaint, the company tweeted a response that included a racy picture. It took about an hour for the company to delete it, raising a bit of ruckus in the Twittersphere.

Here on Wall Street, the Dow Jones industrial average (^DJI) rallied 146 points yesterday, the Nasdaq composite (^IXIC) rose 23 and the Standard & Poor's 500 index (^GPSC) added 15 points.

Finally, Google (GOOG) has agreed to buy Titan Aerospace, the maker of solar-powered, high altitude drones that can fly for years at a time. The drones have the potential to bring internet access to millions of people in remote areas around the globe. It also collects images that could help Google maps.

-Produced by Drew Trachtenberg.