Friday, October 7, 2011

CBO estimates $1.3 trillion deficit for 2011

When the government creates over a trillion dollar of yearly deficit, the economy will never recover. In fact, Obama felt he needs to spend more money to stimulate the economy. Even though the first stimulus package did not create significant jobs, Obama broke his promise that the stimulus package would keep unemployment under 8%. America is past the point of no return in paying down the national debt. It is time for this president to go.

(AP) -- A government report released on Friday predicts that the federal budget hit a near-record $1.3 trillion in the just-completed fiscal year.

The figure matches last year's deficit tally but shows slight improvement over a record set two years ago.

The Congressional Budget Office analysis is in line with previous estimates but offers yet another reminder of the government's precarious fiscal position - just as a congressional supercommittee is working to produce at least $1.2 trillion in deficit savings over the coming decade.

The 2009 record deficit of $1.4 trillion was registered as the country struggled through a recession and was in the midst of the Wall St. bailout. Continuing weakness in the economy has kept tax revenues low. The revenue picture did improve in 2011 as individual income tax receipts rose 22 percent to $1.1 trillion, CBO estimated.

The economy is being weighed down by higher oil prices, an economic slowdown in Europe, and continuing weakness in the housing sector. As a result, corporate income tax receipts dropped by 6 percent.