November 14, 2012
US Could Be on Path to Fifth Straight $1 Trillion Deficit
32
US could be on path to fifth straight $1 trillion deficit after government runs $120 billion October deficit
Published November 14, 2012 | Associated Press
The federal government started the 2013 budget year with a $120 billion deficit, an indication that the nation is on a path to its fifth straight $1 trillion-plus deficit.
Another soaring deficit puts added pressure on President Barack Obama and Congress to seek a budget deal in the coming weeks.
The Treasury Department said Tuesday that the October deficit -- the gap between the government's tax revenue and its spending -- was 22 percent higher than the same month last year.
Tax revenue increased to $184.3 billion -- 13 percent greater than the same month last year. Still, spending also rose to $304.3 billion, a 16.4 percent jump. The budget year begins on Oct. 1. Officials said last year's figures were held down by a quirk in the calendar: the first day of October fell on a Saturday, which resulted in some benefits being paid in September 2011.
The deficit, in simplest terms, is the amount of money the government has to borrow when revenues fall short of expenses. The government ran a $1.1 trillion annual budget deficit in fiscal year that ended in September. That was lower than the previous year but still painfully high by historical standards.
Obama's presidency has coincided with four straight $1 trillion-plus deficits -- the first in history and record he had to vigorously defend during his successful re-election campaign.
The size and scope of this year's deficit will largely depend on what happens with the so-called fiscal cliff -- a package of tax increases and spending cuts set to take effect in January unless the White House and Congress reach a budget deal by then.
If the economy goes over the fiscal cliff, this year's deficit would shrink to $641 billion, according to the Congressional Budget Office. But the CBO also warns that the economy would sink into recession in the first half of 2013.
Comments
You must login to comment.
Pic of the Day
Two Worms
Ending his unexpected round of basketball diplomacy in North Korea on Friday, ex-NBA star Dennis Rodman called leader Kim Jong Un an "awesome guy" and said his father and grandfather were "great...
Twitter Brigade
monicacrowley: Our friend and fellow happy warrior, Andrew Breitbart----oh how you are missed.
alancolmes: Boehner Decides No More Negotiating; Gets Cheers From Republicans t.co/soPjP1IrtY #p2
danaperino: Just caught @greggutfeld placing a whoopie cushion on oreilly's chair. Had to tell him it's March 1 not April 1.
danaperino: The horse meat stories remind me of seeing a new car model for the first time & then seeing 20 more of the same kind while walking to work.
kirstenpowers10: What an unbelievably dishonest & snide column by @markdtooley misrepresenting Christian objection to drone war t.co/be1xsmhsWo
Quote Patrol
Brit Hume
Brit Hume on LBJ, Obama and the Problem with Their Problems
The late James Reston said of LBJ on Vietnam that he was dealing with the politics of his problem not the problem. Fits Pres Obama to a tee.
Fox Nation Salutes
Little Boy Raises 92K to Help Sick Friend
This is easily the most “chocolate bar” story you’ll hear today! If that didn’t make any sense, don’t worry, it will soon.A six-year-old from Los Angeles, Dylan Siegel, has written a book called ...