CBO: Budget deficit hit record $1.4T in 2009

Associated Press ^ | Wednesday October 7, 2009 | Andrew Taylor,

[BenLurkin]

The federal budget deficit tripled to a record $1.4 trillion for the 2009 fiscal year that ended last week, congressional analysts said Wednesday.

The Congressional Budget Office estimate, while expected, is bad news for the White House and its allies in Congress as they press ahead with health care overhaul legislation that could cost $900 billion over the next decade.

The unprecedented flood of red ink flows from several factors, including a big drop in tax revenues due to the recession, $245 billion in emergency spending on the Wall Street bailout and the takeover of mortgage giants Fannie Mae and Freddie Mac. Then there is almost $200 billion in costs from President Barack Obama's economic stimulus bill, as well as increases in programs such as unemployment benefits and food stamps.

The previous record deficit was $459 billion and was set just last year.

The Obama health plan would be "paid for" with new revenues and curbs in spending. But the overhaul effort would eat up tax increases and spending cuts that could be used to bring the deficit down.

Obama has attributed the nation's dismal fiscal situation to the financial and economic crises he inherited. White House Budget Director Peter Orzsag is overseeing the administration's efforts to tackle the soaring deficit next year.

"As part of the fiscal 2011 budget, we will be putting forward proposals that return us to a fiscally sustainable path and that have lower deficits in the out-years," Orszag said in a recent Associated Press interview.

The huge deficits have raised worries about the willingness of foreigners to keep purchasing Treasury debt. The administration promises that once the recession is over and the financial system is stabilized, it will move forcefully to get the deficits under control.

[BenLurkin]

"This new CBO data makes it clear that our children and grandchildren will end up buried under a mountain of debt if we continue taxing, spending and borrowing at these dangerous levels," House Minority Leader John Boehner, R-Ohio, said.

[Gaffer]

And, the typical Obama voter is wondering, "when's he gonna pay my car note?", "when's he gonna pay my utilities", "when's he gonna, gonna, gonna....."

"When I gonna get my check?" They do-not-give-a-shit-what-their-children/grandchildren are gonna have to pay in taxes....hell, they don't pay no taxes!

[EGPWS]

The federal budget deficit tripled to a record $1.4 trillion for the 2009 fiscal year that ended last week, congressional analysts said Wednesday.

Just raise the minimum wage again, create more government jobs and we will have this paid for in no time at all.

Regards,
A hard core liberal fanatic graduate from public school.

[Psycho_Bunny]

It’s not irresponsible....it’s treason.

[kromike]

It’s not irresponsible....it’s treason.

It's overdue to start impeachment proceedings. This scumbag is destroying our country and needs to be stopped.

NOW.

[advance_copy]

Trillions spent and the economy is still in the pits. It’s like the government is a cocaine addict.

[Bobkk47]

Partyin’ like it’s 1929.

[SnuffaBolshevik]

[Zeddicus]

It’s not irresponsible....it’s treason.

I agree. I think what this government is doing to us financially is an act of war. It (the government) is a hostile entity, robbing us and our children blind, literally at gunpoint.

[cranked]

Barry and company of idiotic expert economists are planning to further extend unemployment benefits (for the 3rd time?), etc.

More added to the blooming deficit under his moronic watch.....

[EGPWS]

Obama has attributed the nation's dismal fiscal situation to the financial and economic crises he inherited.

Our leader, the village idiot, has convinced himself of this via buck stoppage and true leadership.

[EGPWS]

"As part of the fiscal 2011 budget, we will be putting forward proposals that return us to a fiscally sustainable path and that have lower deficits in the out-years," Orszag said in a recent Associated Press interview.

Let me guess, 2012 is saved for the much needed martial law and an extended term.

[kabar]

"As part of the fiscal 2011 budget, we will be putting forward proposals that return us to a fiscally sustainable path and that have lower deficits in the out-years,"

Translation: Higher taxes

[EGPWS]

Translation: Higher taxes

Won't work.

It will just increase the deficit

[jamaksin]

Easy!

Multiply by "0" and then add the answer!

[kabar]

It is not a matter if it will work or not. Obama will try to increase revenues by increasing taxes. He will not decrease taxes because the socialists don't believe that reducing taxes actually increases revenue. Obama said as much when he was asked by Maria Bartiromo if he would reduce the capital gains tax. He said no, he would probably increase them to the rates during the Clinton years. Maria said that the reduced rates under Bush actually raised more revenue. Non-plused, Obama said that was not the issue. It was a matter of fairness.

There have been many signals and indications from Treasury, OMB, etc. that there will be tax increases to cut the deficit. The Chinese have been pressing us to cut the deficit. I will say without reservation that the 2011 budget will include major tax increases.

[Osage Orange]

Major...it will be.

And of course it will be totally wrong.

I already pay more than 40% of my income to the Fed's....and I am tired of it.

I risk my money everyday...and they take near 40% of my profits..if I have any. Now I hear they want a piece of everything...win or lose.

Going to come to head here....sooner than later.

[pallis]

Yobama will just pay off the deficit with magic money.

[BornToBeAmerican]

Did you see Glenn Beck Tuesday night. This is all part of the plan. Bankrupt America, you me and everyone else will have nothing, but the gooberment will be able to right off the debt. Inflation will go through the roof and they will control/own everything.

Things need to come to a head. Yesterday!!!!!

[PubliusMM]

This is unconscionable. We simply must stop this insanity. This mad march to marxism must be reversed.

The future of the nation hangs in the balance. It’s time to take back the country.

[cranked]

Yeah, I watched it, but then again, I watch Beck quite religiously. Anyhow, he mentioned/added a little bit more on it today though marginally speaking. What scares me that I or my wife and family will have nothing but perhaps a pot to piss in if all happens as sequenced, but that there are many average everyday Americans who remain either silent or clueless on the possibilities of everything going belly up. When or if America collapses, be assured the ripple effect will be global. That is a whole lot of many.