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• A top White House economic adviser is predicting that better-than-expected tax revenue may put this year`s federal budget deficit "well below" previous estimates.
  In his first major speech since became chairman of the White House Council of Economic Advisers last month, Ben Bernanke said wage and salary income has been much greater than expected, and it is possible that the labor market is stronger than previously thought.
  
  In a speech to the American Enterprise Institute, the former Federal Reserve governor said if the increase tax collections continue along with spending controls, the government`s budget deficit will be reduced below its projected level.
  
  However, Bernanke did not offer specific numbers, which are scheduled to be released in the government`s "midsession`` update tomorrow.
  
  Earlier this year, the White House projected a 427-billion-dollar shortfall for the fiscal year that ends September 30th.
  
  Some private analysts have projected the deficit will actually be closer to 350-billion-dollars.
  
  But the Congressional Budget Office now believes the shortfall could be below 325-billion.
  
  White House officials say the shriking deficit is a sign that President Bush`s tax-cutting policies are working.
  
  However, some economists say at least part of the improvement is a temporary windfall from other factors, including last year`s stock market gains.