CBO: Budget deficit drops to an estimated at $845B

Posted in the Robbinsdale Forum

Deficit Drops Under Obama

Minneapolis, MN

#1 Feb 5, 2013
WASHINGTON—The federal budget deficit will drop below $1 trillion for the first time in President Barack Obama's tenure in office, a new report said Tuesday.

The Congressional Budget Office analysis said the government will run a $845 billion deficit this year, a modest improvement compared to last year's $1.1 trillion shortfall but still enough red ink to require the government to borrow 24 cents of every dollar it spends.

The agency projected that the economy will grow just 1.4 percent this year if $85 billion in across-the-board spending cuts take effect as scheduled March 1. Unemployment would average 8 percent. Obama wants to ease the cuts by replacing them with new tax revenue and alternative cuts, but a clash is looming with Republicans who insist that last month's tax increase on wealthier earners will be the last tax hike they permit.

The report predicted the deficit would dip to $430 billion by 2015, the lowest since the government posted a $459 billion deficit is former President George W. Bush's last year in office. That would be a relatively low 2.4 percent when measured against the size of the economy.

But as more and more baby boomers retire and claim Medicare and Social Security and as Obama's health care law takes effect, deficits would move higher and again reach near $1 trillion in the latter portion of the 10-year window—despite the recently enacted tax increase on family income exceeding $450,000 and automatic spending cuts of about $100 billion a year. The package of spending cuts and tax increases are punishment for Washington's failure to strike a long-term budget pact.
"We need to continue working to cut spending responsibly, protect and strengthen programs like Medicare, and raise revenue by closing tax loopholes that the wealthiest Americans and biggest corporations take advantage of," said Senate Budget Committee Chairman Patty Murray, D-Wash.

Over the coming decade, the deficit would total $7 trillion but would move higher if lawmakers extend expiring business tax breaks and rescue doctors from cuts to their reimbursements under Medicare.

The report provided fresh fodder for Washington's familiar battles over the budget, deficits and debt. Obama inherited an economy in crisis and first-ever deficits exceeding $1 trillion. The 2009 deficit, swelled by the costs of the Wall St. bailout, hit a record $1.4 trillion, while the deficits of 2010 and 2011 both registered $1.3 trillion.

http://www.twincities.com/news/ci_22523677/cb...

“The one and only Smart Liberal”

Since: Aug 12

Former MN Tax Payer

#2 Feb 5, 2013
$845 Billion or $1 Trillion. Who gives a flying f***?

It is no great victory when you are falling off an 845 foot cliff instead of 1,000 foot cliff. You are still dead when you hit the ground.
Smarter Liberal

Minneapolis, MN

#3 Feb 5, 2013
You would kill the economy with cuts because you care about no one but yourself.

“The one and only Smart Liberal”

Since: Aug 12

Former MN Tax Payer

#4 Feb 5, 2013
Smarter Liberal wrote:
You would kill the economy with cuts because you care about no one but yourself.
Awww, look at that. The low integrity poster comes back using my name. Isn't that clever of him?

You don't know a god damned thing about anything - other than your hatred of anyone who:

- smiles each day
- enjoys their jobs
- is successful
- enjoys life

What I would kill would be your FREE STUFF economy. You're absolutely right that I would destroy that economy. But the economy of the USA would thrive again.

Personal responsibility, capitalism, and ingenuity are three key ingredients missing from your entitlement world. In the SL economy, those would be the backbone of the prosperity that would be enjoyed by all.

Oh yeah...F-U Dumbo Jr. Enjoy your government cheese.
jerry

Minneapolis, MN

#5 Feb 5, 2013
Obama's presser (where he DIDN'T take any questions) statements warned about losing jobs in the 'clean energy' industries, national security and education sectors, if, at the very least, a short-term budget isn't passed. It's a loss of govt. jobs he's concerned about. On our way to a to 26 trillion dollar debt on his watch and he's worried more about the loss of govt. and 'clean energy' jobs than the legacy this unimaginable debt will create.

His not so hidden agenda is taking shape. Increased health care costs and expanding subsidies to pay for them along with increased interest on the debt will balloon the percentage of these new expenditures to a point where even slashing the defense budget to sequestration levels won't preclude the disaster that awaits future generations.

This didn't work for the failing economies of Europe but, hey, let's give it a go anyway.

Marxist logic.

“The one and only Smart Liberal”

Since: Aug 12

Former MN Tax Payer

#6 Feb 5, 2013
jerry wrote:
Obama's presser (where he DIDN'T take any questions) statements warned about losing jobs in the 'clean energy' industries, national security and education sectors, if, at the very least, a short-term budget isn't passed. It's a loss of govt. jobs he's concerned about. On our way to a to 26 trillion dollar debt on his watch and he's worried more about the loss of govt. and 'clean energy' jobs than the legacy this unimaginable debt will create.
His not so hidden agenda is taking shape. Increased health care costs and expanding subsidies to pay for them along with increased interest on the debt will balloon the percentage of these new expenditures to a point where even slashing the defense budget to sequestration levels won't preclude the disaster that awaits future generations.
This didn't work for the failing economies of Europe but, hey, let's give it a go anyway.
Marxist logic.
You got it. That's our Man.

But hey...unemployment checks will go on forever. EBT cards will get filled up each month. Section 8 Housing will continue to expand. And everyone will survive thanks to their government cheese.

Seems like the typical US citizen now longer lives by the motto of "Give me liberty, or give me death!" How sad for us.

Since: Sep 11

Rogers, MN

#7 Feb 5, 2013
Smart Liberal wrote:
It is no great victory when you are falling off an 845 foot cliff instead of 1,000 foot cliff. You are still dead when you hit the ground.
And quite the mess. I'll bet it makes an awful noise when it hits.
Your analogy is right on the mark SL.
Amused Slew

Seattle, WA

#8 Feb 5, 2013
Suck it HARDER ~! Really work those knee-pads ! LMAOROTFU~! The economy is improving and the anti-Americans are complaining ABOUT THAT !!???

Tell us again, how you lasted 2 hours and 15 minutes at a man's job !!! The ONLY liberty you've even been concerned about it the liberty to LIE ~~~!!!
Amused Slew

Seattle, WA

#9 Feb 5, 2013
Suck it HARDER ~! Really work those knee-pads ! LMAOROTFU~! The economy is improving and the anti-Americans are complaining ABOUT THAT !!???

Tell us again, how you lasted 2 hours and 15 minutes at a man's job !!! The ONLY liberty you've even been concerned about is the liberty to LIE ~~~!!!

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