Thursday, August 19, 2010

CBO Estimates 2010 Deficit At $1.34 Trillion - Obama To Blame Bush?

Another blame Bush moment? I bet we'll hear it soon on the news. I'm telling you, double dip recession in 2011 and it'll make thing worse.

Wall Street Journal: A new projection from the Congressional Budget Office reflects a worsening of the deficit picture for fiscal 2011, but little change in other years since its last estimate in January.

The CBO projections involve several assumptions that likely make them optimistic. They assume the Bush-era tax cuts expire at the end of 2010, for example, and also that Congress makes no further annual adjustments to prevent the alternative minimum tax from hitting middle-class taxpayers.

The projections also don't include any further government stimulus efforts to accelerate the lagging economy.

For 2010, the current fiscal year, CBO projects the deficit will come in at around $1.34 trillion, down just slightly from its $1.35 trillion estimate in January. For 2011, CBO says the deficit will come in at $1.07 trillion, up from $980 billion in January. For 2012 and 2013 the deficits would be $665 billion and $525 billion, compared to $650 billion and $539 billion in January.

Deficits decline every year until 2015 when they start to climb again, under pressure from baby boomer retirements and mounting interest payments on government debt.

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