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US Deficit (Low-Balled) At $1.35 Trillion

From Associated Press:

AP Source: Federal deficit projected at $1.35T

By Andrew Taylor, Associated Press Writer

January 26, 2010

WASHINGTON – The latest congressional budget estimates due Tuesday predict a $1.35 trillion deficit for this year, a top Capitol Hill aide says.

The Congressional Budget Office figures confirm the massive problem facing President Barack Obama and his Democratic allies just days before his Feb. 1 budget submission. The White House says Obama will propose a three-year freeze on domestic agency budgets, though the savings would barely make a dent.

Mr. Obama is going to propose a spending “freeze”? Isn’t this the same man who since he took office has claimed that we were not spending enough? That the deficit did not matter? That the original stimulus packages (both Bush’s and his) were so inadequate that we need more stimulus?

Is he admitting he was absurdly wrong?

The deficit would slide to $480 billion by 2015, CBO says, but only if tax cuts on income, investments and large estates are allowed to expire at the end of this year.

Except that raising taxes often does not lower the deficit, since it slows down the economy and people find ways around them.

Most budget experts see deficits as far higher once tax cuts and other policies are factored in.

The 2010 deficit figure is in line with previous estimates and would be a slight decline from last year’s $1.4 trillion shortfall. But plans afoot on Capitol Hill for a new jobs bill and a coming Obama request for war funds would add to the total.

In other words, the deficit will only be less if we don’t count a lot of Mr. Obama’s additional spending.

So why even bring it up?

The figures arrived just hours before the Senate is likely to reject a White House-backed plan to establish a bipartisan task force to recommend steps to curb the deficit…

And by “curb the deficit” the White House and the AP mean: raise taxes.

The spending freeze, expected to be proposed by Obama during the State of the Union address on Wednesday, would apply to a relatively small portion of the federal budget, affecting a $477 billion pot of money available for domestic agencies whose budgets are approved by Congress each year. Some of those agencies could get increases, others would have to face cuts; such programs got an almost 10 percent increase this year. The federal budget total was $3.5 trillion.

The freeze on so-called discretionary programs would have only a modest impact on a deficit expected to match last year’s $1.4 trillion. The steps needed to really tackle the deficit include tax increases and curbs on benefit programs like Medicare, Medicaid and Social Security…

The real scandal in our government is that so much of the spending is non-discretionary (that is, mandatory). Which would seem to be unconstitutional as it enslaves future legislatures and citizens.

But somehow that is never mentioned.

Just like this AP article fails to give any historical context to Mr. Obama’s reckless spending.

But for the record, the deficit is now three time higher than it was a mere two years ago.

This article was posted by Steve on Tuesday, January 26th, 2010. Comments are currently closed.

5 Responses to “US Deficit (Low-Balled) At $1.35 Trillion”

  1. Reality Bytes says:

    There’s a new kinda wallet on sale @ Home Depot! IT’S CALLED A WHEELBARROW!!!

  2. proreason says:

    How long would you be solvent if you spent 12% more than you earned?

    Now, ask yourself the same question, but this time, assume you already owe more than your annual income.

    Believe it or not, that is what this Moron proposes for the country you live in.

    And he ain’t worried the least little bit about it.

    Hey, there seems to be plenty of money to operate his personal jet fleet, isn’t there?

    And really, he was head over heals in debt himself in the 90’s and look at that man now !!

    Life’s great when you have a Barack Obama in it !!!!

  3. mr_bill says:

    Before its all said and done, they’re going to (re)propose PayGo in an effort to appear ‘populist’ (since thats the buzzword of the MSM this week). PayGo is just another way to guarantee higher taxes since the government never proposes a decrease in spending in one area in order to cover a spending increase in another area. I’ll expect to see it suggested sometime after the SOTU address or even possibly in it, I’m betting on late next week.

  4. tranquil.night says:

    “The real scandal in our government is that so much of the spending is non-discretionary (that is, mandatory). Which would seem to be unconstitutional as it enslaves future legislatures and citizens.”

    This parted the clouds of a great deal of mental fog. Thanks Steve.

    I’m having troubled following the left’s desperate rationale lately. A lot of it is due because the media is saying different things, the White House throwing SOTU pitches out there that are across the spectrum – ideas that can’t be called anything other than ‘awful’ on top of irrelevant.

    Of course all of this misdirection is on purpose while they bounce ideas off the public and see what sticks in the polls. They’re fishing; this string of lies is just more bait. Tomorrow night is going to be a trainwreck if this is any sign.

    Oh, and just checking Huffing and Puffington – the Cook Fringe isn’t taking the hook either. Heh.

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