U.S. Federal Deficits Soar Past [Obama's] Previous Estimates
Congressional Budget Office says Obama's request would generate deficits averaging $1T a year over next decade -- $2.3T more than Obama predicted.
Deteriorating economic conditions will cause the federal deficit to soar past $1.8 trillion this year and leave the nation wallowing in a sea of red ink far deeper than the White House had previously estimated, congressional budget analysts said today.
In a new report that provides the first independent analysis of President Obama's budget request, the nonpartisan Congressional Budget Office predicted that the administration's agenda would generate deficits averaging nearly $1 trillion a year over the next decade -- $2.3 trillion more than the president predicted when he unveiled his spending plan just one month ago.
And although Obama would come close to meeting his goal of cutting the deficit in half by the end of his first term, the CBO predicts that the nation's annual operating deficit would never drop below 4 percent of the overall economy over the next decade, a level administration officials have said is unsustainable because the national debt would grow too rapidly.
By the CBO's estimate, for example, the nation's debt would grow to 82 percent of the overall economy by 2019 under Obama's policies, compared with a pre-recession average of 40 percent. ...
But I thought that closing that loophole on hedge fund managers' income was going to pay for Green Jobs for everybody??? Surely, hedge fund managers are going to make gazillions and bazillions in the future, right?
Don't fear, the Democrats are resolute, and won't allow anything as uninspiring of Hope and Change as arithmetic to get in their way:
"Our priorities are the same," Pelosi said. "This budget is a statement of our values and our investments in education, health care and the health of America. That includes prevention as well as care, and the energy initiatives as well as tax relief for 95 percent of the American people, as well as an approach that takes the deficit down. Those are the priorities of the budget."
White House budget director Peter Orszag made the same point after speaking with reporters on Tuesday.
"There are always some adjustments," Orszag said of the legislative budget process. "But those four pillars" -- health care, education, clean energy and deficit reduction -- "will be represented."