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Deficit Tops $1 Trillion for Second Year in a Row

2 years ago

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Gasp! The federal budget deficit has exceeded $1 trillion for the second consecutive year. But there's good news: The $1.005 trillion mark recorded at the end of June is $81 billion less than the deficit at that point in 2009, according to the Congressional Budget Office, the non-partisan group that keeps track of such things.

Tax revenue, fueled by corporate tax payments, is up a little while government spending has decreased some 3 percent, the budget office said. "Receipts from corporate income taxes for the first nine months were $31 billion (or 31 percent) higher than the amounts collected during the same period last year," the CBO said. "That increase reflects higher taxable profits in 2010, resulting from improved economic conditions and from lower depreciation charges."
Senate Budget Committee

Another accounting comes due on Sept. 30, the end of the 2010 fiscal year. But if the trend holds -- receipts for the first three quarters were $8 billion above the same period in 2009 -- the yearly deficit should wind up slightly below last year's $1.4 trillion mark. "The increase in corporate payments in June could indicate that the September quarterly payments will also show strength because corporate receipts in those two months tend to move in tandem," CBO said.

"There is marginally good news, but one has to keep it in perspective," said Robert Bixby, executive director of the Concord Coalition, a non-partisan group that advocates for responsible budgeting. "There is some revenue growth, which is significant because that is an indication the economy is recovering and that will help bring the deficit down. That's a pretty slim reed to grasp. It is better than nothing."

The last time the federal budget was balanced -- with income to the government meeting or exceeding outlays approved by Congress -- was 2001. That budget, for the fiscal year ending Sept. 30, 2001, was written under President Clinton before President George W. Bush took office in January 2001.

Filed Under: Economy, Budget, Taxes, Obama Administration, Congress

Tagged: budget deficit, dailyguidance, deficit

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andrc657

President Bush gave huge tax cuts to the rich while spending billions on two wars. Bush turned the surplus he inherited from Clinton into huge deficits. President Obama needs to end those wars and those tax cuts for the rich to reduce our deficit.

July 10 2010 at 12:56 PM Report abuse Permalink -2 rate up rate down Reply

joe

Obama was out there today blaming the problems on Bush and the Republicans. He said the Republicans drove the economy into a ditch and now they wanted the keys back. This man still thinks the general population, or at least most of them, are stupid. If the ecomonmy is in a ditch Obama is just making the ditch deeper while he boasts that he is getting us out of it. Of course he got some laughs and some applause from the naive college crowds he likes to speak to.

July 09 2010 at 11:54 PM Report abuse Permalink +4 rate up rate down Reply

pete

Have these rookies even put together a budget and passed it yet???????? A budget is soooo limiting. Obama has so many empty checks he can write out to buy votes. Why should dems paint themselves into a corner with a budget?????

July 09 2010 at 9:26 PM Report abuse Permalink +9 rate up rate down Reply

forrestoak

The more we try to artificially control the economy through the government, the larger the economic collapse that we will have. Recessions are like winter. It is an important part of nature. The good companies survive, bad companies die and create new opportunities. Now we have government propping up bad companies, bankrupt social programs, and bankrupt state governments. Eventually we will have to pay the piper and it would be better sooner than later.

July 09 2010 at 8:58 PM Report abuse Permalink +14 rate up rate down Reply

arnoldhoneybrown

By the way the current actual Unemployement rate is 16.7%. This ulike the figure Obama uses includes thos that were on but now off due to time but still haven't found a job. Thats the honest number not 9.5 unless you don't think tose not getting money now but still no job do't count ?? What you say Demoncrats

July 09 2010 at 8:52 PM Report abuse Permalink +10 rate up rate down Reply