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Oops! Deficit Projected To Be $2T Higher

A wonderfully typical bit of news for a late Friday evening during the height of summer, from an always compliant Associated Press:

AP Sources: $2 Trillion Higher Deficit Projected

August 21, 2009

WASHINGTON (AP) — The Obama administration expects the federal deficit over the next decade to be $2 trillion bigger than previously estimated, White House officials said Friday, a setback for a president already facing a Congress and public wary over spending.

The new projection, to be announced on Tuesday, is for a cumulative 2010-2019 deficit of $9 trillion instead of the $7 trillion previously estimated. The new figure reflects slumping revenues from a worse economic picture than was expected earlier this year. The officials spoke only on the condition of anonymity ahead of next week’s announcement.

Ten-year forecasts are volatile figures subject to change over time. But the higher number will likely create political difficulties for President Barack Obama in Congress and could create anxiety with foreign buyers of U.S. debt.

Earlier this week, the White House revealed that it expects a budget deficit for the fiscal year ending Sept. 30 to be nearly $1.6 trillion. That figure was lower than initially projected because the White House scratched out $250 billion that it had initially added to the budget as a bank rescue contingency. The administration ultimately did not ask Congress for that money.

Still that number, together with the 10-year projection, represents a huge obstacle for an administration trying to undertake massive policy overhauls in health care and the environment…

Both the White House and the Congressional Budget Office scheduled announcements for Tuesday on their new budget estimates. Relying on more pessimistic economic projections than the White House, the CBO earlier this year predicted deficits totaling $9.1 trillion over 2010-19. Those predictions were based on expectations that the economy would shrink by 2.2 percent this year.

In its earlier projections, the White House said the deficit would be manageable if it slides to 3 percent of gross domestic product. Earlier projections barely met that standard — even after relying on optimistic assumptions like the wars in Iraq and Afghanistan costing $50 billion a year instead of the $130 billion budgeted for 2010.

Now, the deficits could easily exceed 4 percent of GDP, even after cost-cutting efforts or new revenues claimed in Obama’s budget.

Such deficits have always prompted Congress and the White House to take politically painful steps to curb them, such as former President Bill Clinton’s tax-heavy 1993 deficit reduction plan. A companion effort by Obama could force him to break his promise to not raise taxes on individuals making less than $200,000 a year.

Gosh, it seems like only yesterday when we were being told a very different story by the very same Associated Press:

AP source: White House projects lower deficit

By Jim Kuhnhenn And Philip Elliott, Associated Press Writers

August 20, 2009

WASHINGTON – The federal budget picture will look slightly better next week. Relatively speaking.

The White House plans to announce the federal deficit will still be a record breaker, at $1.58 trillion, for the current 2009 fiscal year. But the amount is about $262 billion less than officials predicted earlier this year.

That’s mostly because the administration erased a $250 billion contingency fund it had penciled into the budget in case Wall Street needed more government help in getting out of the financial crisis.

While the numbers still represent a tremendous amount of red ink, they would give the administration the opportunity to say its policies have prevented a more extreme financial crisis and eliminated the need for further bank infusions.

Nonetheless, the deficit amount is a huge obstacle for an administration trying to undertake massive policy overhauls in health care and the environment. And the true impact of deficits lies in the coming years.

A slow recovery from the recession, as many economists predict, could test Obama’s goal of cutting the deficit to $512 billion in 2013 and pressure him to call for deep spending cuts or increases in revenue through tax hikes.

Even at $1.58 trillion, the deficit this year would be three times larger than last year. A White House official, speaking on the condition of anonymity to discuss the report before its release Tuesday, said the report for the budget year that ends Sept. 30 also will predict Washington will spend $3.653 trillion this year. Revenue, however, would reach only $2.074 trillion

We suspect this is part of that mid-summer budget report that Mr. Obama refused to submit on time back in July.

Now we know why.

But how soon will it be before we hear from the AP that the citizenry are demanding their taxes must be raised?

This article was posted by Steve on Saturday, August 22nd, 2009. Comments are currently closed.

17 Responses to “Oops! Deficit Projected To Be $2T Higher”

  1. Liberals Demise says:

    Let us not bother the King and family as they are on vacation after a grinding 200 days in orifice.

    Will he blame unAmericans for the presence of Hurricane Bill coming towards “Marthas’ by da Sea” ?
    It must be a conspiracy!!

    • proreason says:

      That’s the kind of compassion the country needs, LD!!

      Why already, the Moron has caused Hurricane Bill to decrease from Cat 4 to Cat 2. Isn’t the enough for our Boy King to deserve the 5th well deserved vacation of his first 4/7 year?

      And as for the $2 Trillion toe-stub, hey, mistakes happen right?

      And allocated out to the country’s hopeful taxpayers, $2 Trillion is only a bit more than twice what a family pays in annual income taxes. Only kooks and conservatives would be concerned about that trifling sum!!

      And besides, its all BushHitler’s fault. It would at least twice as much more if our little Boy King hadn’t worked so hard between his other 4 vacations this year and the 2 vacations he took after Nov 4 in 2008.

    • Liberals Demise says:

      Look at it this way pro……..
      One whole week of Nobama lies by a bubbly Puffdaddy Bob Gibbs.
      We will be getting whale and blimp sightings from the MSM but who cares, YIPPEE!!
      A whole week of non attacks against Americans by this UnAmerican Presidency!!

  2. VMAN says:

    It’s George bushes fault that this is “unexpectedly” higher

  3. catie says:

    Vman, I think Baghdad Bobby Gibbs eluded to that yesterday.
    But what of it, 2 T here, 2 T there it’s not like we’re talking about “real” money anyway when one can get Timmy to turn on the printing presses. He’s killing this country.

  4. Colonel1961 says:

    That’s only $6,500.00 per capita – no bigee. And seeing as a plurality of Americans hardly pay any federal income taxes, who really cares! Not me. Wheeee….

    See ya’ll on the Vineyard! Ciao!

    • proreason says:

      And only about $20,000 per tax-paying family.

      It’s only twice what the annual Individual Income Tax receipts were back when the country was swirling in the toilet with BushHitler. Of course, tax receipts are off by 30% or so, since BushHitler flushed before he left office…..no involvement by George Soros or Goldman Sachs can be proven.

      Hardly anything to worry about.

    • Colonel1961 says:

      I’m sorry, PR – I forgot the mandatory slam on BushHitler. I hope you won’t turn me in to the White House. Please! ;-)

    • Rusty Shackleford says:

      wrong subject, sorry…

  5. MinnesotaRush says:

    Golly! I always seem to get goofed up in my checkbook by a few trillions, too! HUGE difference though .. the banker doesn’t let me get by with it.

    Honesty, transparency, and accountability are a funny batch of things, ‘ay.

    This is what happens when we allow a batch of Chicago thug politicians into office who behave like a bunch of thieving kids while trying to create their ill conceived and “imagined” utpoia.

    • proreason says:

      MR. Your problem is that you keep a checkbook.

      Remember, the Moron was hopelessly in debt before his self-obsessed autobiographies immaculately sold millions of copies around the time he was immaculately lifted up to the U.S. Senate. Prior to that time, sales were abysmal, but all of a sudden, millions were sold, with him collecting several dollars a copy. Now, I have no evidence whatsoever that his handlers bought all those books. I’m sure every other household in my neighborhood has one. And I’m not saying that the surprising disclosure of the divorce records of his two main opponents for his Senate seat was a rigged deal. Yes, it’s one of the few times in history that divorce records have been disclosed during a campaign, but it certainly was entirely coincidental.

      But I am saying that the man has never balanced a checkbook in his life.

      And clearly doesn’t think it is necessary.

    • neocon mom says:

      Interesting theory PR, I’d buy it, but people do so love autobiographies of no-name politicians. They make great beach reading.

      Wonder if “The Audacity of Penning Two Autobiographies Before Age 45” was handed out to each and every A.C.O.R.N. volunteer. Probably mandatory reading at a lot of universities, too. That might explain why a lot of the factual inaccuracies flew under the radar–a lot of Obama’s colleagues in real life didn’t know about the book until he was well-established as a contender for Prez.

      Which leads me to another interesting comparison/ coincidence. Remember that “Million Little Pieces” memoir by that guy that Oprah picked? Then she panned it and she scolded the author on her couch when she found out how phony it all was? Wonder when she’s going to have Barry on the couch for his scolding. I won’t be holding my breath.

    • Rusty Shackleford says:

      At this point I have to recommend Michelle Malkin’s very well researched book, “Culture Of Corruption”. I’m not through the first chapter yet and it’s filled with detailed information about where the Obamas got their money. It’s pretty ugly.

    • proreason says:

      neocon mom, Jack Cahill on American Thinker, assisted by others, has written extensively on the real author of “Dreams of my Father”.

      He is 99% certain that Bill Ayers was the ghost writer of much of the book.

      There are many reasons, so you should read his latest pieces about it.

      Obamy has no history of writing before or after that one book, so Dreams of My Father was like a virgin birth. It’s like a baseball player who never played in high school, or never played in college, joins a major league team and becomes an instant star. Possible, but not likely. By the way, the second autobiograpy is pedestrian, and was probably ghosted by another writer. Some think that ghost writer is Obamy’s current 28 year-old speechwriter.

      But it turns out that Ayers is a published author, and although he is a scumbag, he is an excellent writer. Strangely enough, there are hundreds of parallels between his writing style and the style that appears in “Dreams”, not just the overall thematic structure of the books, but down to the choices of names for obscure characters.

      In addition to that, common metrics such as sentence length and reading lelels are identical between “Dreams” and Ayers works.

      Obamy probably met Ayers when they lived a few blocks apart when Obamy attended Columbia, and when Obamy was unable to write coherently enough to be publishable, Ayers took the child-like draft and shaped it into a book that is considered (by qualified critics) to be the best book by “a high-ranking politician” ever written.

      fyi, Steve disagrees vehemently. He says he’s read “Dreams” and it sounds just like the Moron.

      But Cahill makes a really compelling case.

    • GL0120 says:

      Why is everyone putting down TCO’s book?
      Rumor has it that soon the government will be issuing one to every family, and that is great news!
      Imagine, it’s a cold winter’s night, you’ve been out of work since shortly after 1/20/2009, your starving family depends on your ability to fight off other starving folks for the occasional Pigeons that you can catch, you haven’t been able to afford to heat your home in years, and along comes this wonderful book!
      Into the fireplace for a moment’s blessed heat and cooked Pigeon for tonight’s dinner.

  6. Rusty Shackleford says:

    Previous estimates were estimated to not exceed the overages which were underestimated by an estimated ten percent over the previous estimation.

    • Liberals Demise says:

      I estimate that your previous estimates are are not overestimates but underestimates if I estimated you right.

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