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Despite shrinking deficit, House GOP eyeing government shutdown

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WASHINGTON — The federal deficit has shrunk to its lowest level since 2008, according to a report released Tuesday, but House Republicans will launch the next budget battle this week with a vote that threatens to shut down the federal government unless President Barack Obama agrees to halt his health care law.

The deficit has dropped from its peak at the start of the Great Recession and is on track to decline even more thanks to an improving economy, higher taxes on the wealthy and reduced federal spending, the report from the nonpartisan Congressional Budget Office concluded.

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