Federal Budget Deficit Falls To $1.1 Trillion: CBO Report

Flaylo · Jan 31, 2012

Federal Budget Deficit Falls To $1.1 Trillion: CBO Report

The Congressional Budget Office report also says that annual deficits will remain in the $1 trillion range for the next several years if Bush-era tax cuts slated to expire in December are extended, as commonly assumed.

The report is yet another reminder of the perilous fiscal situation the government is in, but it's commonly assumed that President Barack Obama and lawmakers in Congress that little will be accomplished on the deficit issue during an election year.

The CBO study also predicts modest economic growth of 2 percent this year and forecasts that the unemployment rate will remain above 8 percent this year. That is based on an assumption that President Barack Obama will fail to win renewal of payroll tax cuts and jobless benefits by the end of next month.

The new figures also show that last summer's budget and debt pact has barely made a dent in the government's fiscal woes.

The pact imposed $2.1 trillion in spending cuts over 10 years, but the latest estimates predict $11 trillion in accumulated deficits over the 2013-2022 time frame if the Bush-era cuts in taxes on income, investments, large estates and on families with children are renewed. Obama has proposed largely extending them, but allowing them to expire for upper-income taxpayers.

The deficit would require the government to borrow 30 cents of every dollar it spends. Put another way, the deficit will reach 7 percent of the size of the economy, a slight dip from last year's 8.7 percent of gross domestic product.

The CBO report shows that the deficit dilemma would largely be solved if the tax cuts enacted in 2001 and 2003 and renewed in 2010 through the end of this year were allowed to lapse. Under that scenario, the deficit would drop to $585 billion in 2013 and to $220 billion in 2017.
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Yup, taxcuts sure do spur growth. For the rich that is, in their pockets, to hell with the deficit.

Oddball · Jan 31, 2012

The deficit would also be solved if they didn't spend $1.1 trillion more than they took in.

But that makes way too much sense.

Flaylo · Jan 31, 2012

Oddball said: ↑

The deficit would also be solved if they didn't spend $1.1 trillion more than they took in.

But that makes way too much sense.
Click to expand...

Cuts need to be made, I agree, like the Bush taxcuts. Loophole for the rich need to be cut.

Soggy in NOLA · Jan 31, 2012

Flaylo said: ↑

Federal Budget Deficit Falls To $1.1 Trillion: CBO Report

The Congressional Budget Office report also says that annual deficits will remain in the $1 trillion range for the next several years if Bush-era tax cuts slated to expire in December are extended, as commonly assumed.

The report is yet another reminder of the perilous fiscal situation the government is in, but it's commonly assumed that President Barack Obama and lawmakers in Congress that little will be accomplished on the deficit issue during an election year.

The CBO study also predicts modest economic growth of 2 percent this year and forecasts that the unemployment rate will remain above 8 percent this year. That is based on an assumption that President Barack Obama will fail to win renewal of payroll tax cuts and jobless benefits by the end of next month.

The new figures also show that last summer's budget and debt pact has barely made a dent in the government's fiscal woes.

The pact imposed $2.1 trillion in spending cuts over 10 years, but the latest estimates predict $11 trillion in accumulated deficits over the 2013-2022 time frame if the Bush-era cuts in taxes on income, investments, large estates and on families with children are renewed. Obama has proposed largely extending them, but allowing them to expire for upper-income taxpayers.

The deficit would require the government to borrow 30 cents of every dollar it spends. Put another way, the deficit will reach 7 percent of the size of the economy, a slight dip from last year's 8.7 percent of gross domestic product.

The CBO report shows that the deficit dilemma would largely be solved if the tax cuts enacted in 2001 and 2003 and renewed in 2010 through the end of this year were allowed to lapse. Under that scenario, the deficit would drop to $585 billion in 2013 and to $220 billion in 2017.
Click to expand...

Yup, taxcuts sure do spur growth. For the rich that is, in their pockets, to hell with the deficit.
Click to expand...

So, we're still overspending by $1,100,000,000,000...

Oh happy day!!!!

Soggy in NOLA · Jan 31, 2012

Flaylo said: ↑

Oddball said: ↑

The deficit would also be solved if they didn't spend $1.1 trillion more than they took in.

But that makes way too much sense.
Click to expand...

Cuts need to be made, I agree, like the Bush taxcuts. Loophole for the rich need to be cut.
Click to expand...

That's just dumb... if you took ALL of the money possessed by the evil rich you wouldn't even put a dent in the deficit.

Flaylo · Jan 31, 2012

Soggy in NOLA said: ↑

Flaylo said: ↑

Oddball said: ↑

The deficit would also be solved if they didn't spend $1.1 trillion more than they took in.

But that makes way too much sense.
Click to expand...

Cuts need to be made, I agree, like the Bush taxcuts. Loophole for the rich need to be cut.
Click to expand...

That's just dumb... if you took ALL of the money possessed by the evil rich you wouldn't even put a dent in the deficit.
Click to expand...

Are you sure about that? If not for the Bush taxcuts which really put more money into the hands of the rich the deficit would not have skyrocketed.

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Federal Budget Deficit Falls To $1.1 Trillion: CBO Report

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Federal Budget Deficit Falls To $1.1 Trillion: CBO Report

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