Skip to comments.CBO: Deficit estimate for 2012 hiked to $1.2T after payroll tax cut, jobless benefits
Posted on 03/13/2012 2:50:21 PM PDT by tobyhill
A new estimate from congressional economists says the government will run a $1.2 trillion deficit for the budget year ending just a few weeks before Election Day. It would be the fourth straight year of trillion dollar-plus deficits.
The almost $100 billion spike from earlier projections for the fiscal 2012 deficit comes almost exclusively because Congress passed legislation recommended by President Barack Obama to renew a 2 percentage point cut in payroll taxes and jobless benefits for people languishing on unemployment rolls for more than six months.
(Excerpt) Read more at washingtonpost.com ...
Right about now, Hussein will find a microphone, and scold somebody else for not being fiscally responsible.
What budget? Senate never passed a budget and Barry’s FY proposal was a fairy tale.
Really, how long can you live on incomprehensible amounts of imaginary captial before the whole roof falls in?
“The almost $100 billion spike from earlier projections for the fiscal 2012 deficit comes almost exclusively because Congress passed legislation recommended by President Barack Obama to renew a 2 percentage point cut in payroll taxes and jobless benefits for people languishing on unemployment rolls for more than six months.”
Hmm... If the spike was from previous years, and it was a continuance, why would it spike again? It would remain flat, minus the interest.
Or am I missing something here?
Good point. This is the second year of the payroll tax reduction and unemployment benefits were extended again.
I agree. Any consumer driven growth we've had was paid for with borrowed money from China to pay for unemployment benefits extensions and temporary make-work jobs.
Much of that is spent on Chinese made TVs and computers, so the money goes back to them, and then we still have to pay back the money we borrowed from them anyway.
Great economic policy we have. Borrow money to buy their stuff, put our own out of work, borrow more money to pay for the unemployment benefits, which is used to buy more of their stuff. On an on it goes.
But the DOW likes it. Why I'm not sure.
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