Deficit to Hit All-Time High (Tax Revenues Plummet, New FY 2010 Deficit of $1.6 Trillion)

The Wall Street Journal ^ | Sunday, January 31, 2010 | Jonathan Weisman

[kristinn]

President Barack Obama will propose on Monday a $3.8 trillion budget for fiscal 2011 that projects the deficit will shoot up to a record $1.6 trillion this year, but would push the red ink down to about $700 billion, or 4% of the gross domestic product, by 2013, according to congressional aides.

The deficit for the current fiscal year, which ends on Sept. 30, would eclipse last year's $1.4 trillion deficit, in part due to new spending on a proposed jobs package. The president also wants $25 billion for cash-strapped state governments, mainly to offset their funding of the Medicaid health program for the poor.

This WSJ article fails to mention the plummeting of FY 2010 federal tax receipts the WSJ reported just a few weeks before:

Year-to-date federal government revenues totaled $487.78 billion, compared to $547.38 billion for the first three months of fiscal 2009. Individual income-tax receipts totaled $207.73 billion, compared to $255.29 billion. Corporate tax revenues were at $33.93 billion, down from $50.37 billion.

Last August, the AP reported that federal revenues were on pace to drop 18%, the worst since 1932.

[kristinn]

Just so this is clear. The $1.6 trillion deficit is for the current fiscal year which began on October 1, 2009. When Obama presented his FY 2010 budget a year ago, he projected a deficit of $1.17 trillion. he was only off by a half-trillion dollars or so.

Obama is proposing a deficit of $1.3 trillion for FY 2011.

[Hoodat]

America’s biggest enemies could never have dreamed of hurting America this badly.

[BP2]

But Obama inherited this mess ...

[Jim Robinson]

Obama is an idiot.

[FlingWingFlyer]

I think this news is what helped drive up BO’s approval numbers among DemocRATS in Rasmussen’s new poll.

[Oceander]

Of course!

[LibLieSlayer]

Hoax and Chains.

LLS

[exit82]

Obama is not an idiot, Jim.

He is a closet Muslim, American-hating, Fascist- loving,Saudi king bowing-downer, Saul Alinsky-loving Marxist.

But the man is no idiot. He is doing exactly the bidding of his master.

And we only have nine months to neuter him by removing the Dems from Congressional majorities on Election Day.

[YankeeReb]

Barkey has no clue about the connection between jobs, economic activity and tax revenues. Like any good Marxist he figures you just raise taxes in the face of unemployment to get more revenue.

[andy58-in-nh]

You might also make note of the fact that Obama's "out-year" deficit reductions are based on a presumed increase in revenue due to the expiration of the Bush tax cuts. In other words, personal income tax, dividend tax, and capital gains rates are set to skyrocket beginning in 2011.

The know-it-alls in Washington are counting on vastly increased revenue as a result - even in the face of mountainous debt and a persistent slump in credit demand. To believe that, you'd have to presume that such higher taxes will not further suppress economic growth, and perhaps that Santa, the Easter Bunny and the Tooth Fairy will help take up the slack.

[eyedigress]

The black-market community is set to make quite a run. Hello America, here comes Chicago.

[smoothsailing]

I think this news is what helped drive up BO’s approval numbers among DemocRATS in Rasmussen’s new poll.

I've been wondering what could have caused the poll bump, I thought maybe independents had been fooled by his fake feint to the center at the SOTU and at the GOP meeting in Baltimore, but you may be on to something.

[ButThreeLeftsDo]

“Tax Revenues Plummet....”

What would Alinsky do?

Step on the gas.

Raise taxes.

[stephenjohnbanker]

“America’s biggest enemies could never have dreamed of hurting America this badly.”

America’s biggest enemies are in the White House.

[eyedigress]

Democrats never admit a mistake.

[Gapplega]

Where can we go?

[Jim Robinson]

No, he’s just an idiot. He actually believes in his B/S Marxism.

[SunkenCiv]

The $1.6 trillion deficit is for the current fiscal year which began on October 1, 2009. When Obama presented his FY 2010 budget a year ago, he projected a deficit of $1.17 trillion. he was only off by a half-trillion dollars or so.

Thanks kristinn.

[FrankR]

"Like any good Marxist he figures you just raise taxes in the face of unemployment to get more revenue. "

It's the ROW Syndrome (Redistribution Of Wealth)...they figure those who still have jobs should now give even more in taxes to make up for those who stupidly lost their jobs.

The people who lost jobs were just collateral damage in the obamaTATOR's quest to kill the American economy, but the people who still have jobs will just have to give more to make up for it.

Remember the old adage that "it's easier to get a new job if you already have a job"?...we'll, it's also easier to save America while we still HAVE an America."

Remember November.

[eyedigress]

He would have failed Sim City in 15 minutes.