Skip to comments.Obama budget sees increased deficit (only another $1.33 TRILLION)
Posted on 02/11/2012 2:50:33 AM PST by Libloather
Obama budget sees increased deficit
By Erik Wasson - 02/10/12 06:07 PM ET
President Obamas 2013 budget due out Monday will estimate the deficit for 2012 to be $1.33 trillion, higher than the $1.29 trillion deficit in 2011, according to senior administration officials.
The increase happens largely because the budget assumes enactment of a $350 billion stimulus package, including extension of the payroll tax cut. That package is a scaled-down version of the $447 billion American Jobs Act that Obama proposed in the fall.
The budget estimates that the deficit in 2013 will be $901 billion. This means that Obama will fail to cut the deficit in half after his first term, something he once vowed to do.
Last years budget had a rosy prediction that the deficit would decline to $768 billion in 2013, about half the $1.4 trillion deficit of his first year.
To get to the $901 billion target, Obamas budget assumes that the Bush era tax rates for the wealthy will expire next year, something that is by no means certain.
Officials highlighted that by the end of 2022, the deficit would be $704 billion, 2.8 percent of the economy. They said that this would "stabilize" the growth of the national debt.
Overall the budget, as expected, will call for a mixture of tax increases and spending cuts to achieve $3 trillion in deficit reduction over ten years.
Senior officials said that elements of the budget on tax reform will contain some details but a more complete corporate tax overhaul will be presented by the end of February. The budget includes a "Buffet rule" mandating that millionaires pay no less than 30 percent of their incomes in taxes and caps deductions for those making more than $250,000.
Senior administration officials said $1.5 trillion will be in new revenues, $278 billion in mandatory spending cuts such as to farm subsidies and $360 billion in healthcare reforms including to Medicare.
She does need to put some more meat on that hiney. /s
This should get Bambi another Ratings Downgrade.
Obama’s budget should not mean squat, The Congress should make a budget and make him adhere to it. That is their job, but it won’t happen.
The Congress is as bad as Obama is.
Congress is worse... obama tells you to your face that he is a communist... the republican leadership talks to us like Reagan would and works to implement all of bammy’s crap behind closed doors and in secret deals... unless they give up their Constitutional duties like with the Super Committee... win win for the ruling elite... they lie to us and get bammy’s crap passed all in one sweep.
Putting some meat on it would make it what is called "well marbled"...