White House Predicts Budget Deficit Will Grow to $1.84 Trillion
Peter Orszag announced the deficit for this fiscal year will be higher than first estimated
As President Barack Obama works to get Congress and citizens behind his $3.4 trillion budget, the White House released revised deficit figures today that could make his battle harder. The administration now predicts that the deficit for fiscal year 2009 will rise to $1.84 trillion—$89 billion more than was estimated in February.
Underscoring that the deficits "are driven in large part by the economic crisis inherited by this administration," Obama's budget director, Peter Orszag, wrote in the Office of Management and Budget's blog this morning that the numbers were revised partly because the economy is recovering more slowly than expected. Overall federal revenue will be between $30 billion and $50 billion less for both 2009 and 2010 than the office had projected previously. "We also have more information about the severity of the financial crisis facing the nation, and this is reflected in new, higher estimates for the cost of financial stabilization efforts," Orszag wrote. Those kinds of efforts include billions in government bailout money, along with the $787 billion stimulus package.
The OMB projects that the deficit will fall sharply in fiscal 2010, which begins October 1, to $1.26 trillion. Obama has pledged to cut the deficit in half by the end of his tenure.
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Reader Comments
Roth IRA / 401k
Pay the taxes now and put it all into Roth IRA/ 401ks. Also buy property and hard goods that appreciate, like rental houses and guns. Most young people least the ones I know are into Roth iras/401ks so they do not have to pay taxes in 30 or 40 years.
Be self-sufficent.
My cousin and uncle have the best plan. Pool your money, sell your houses, and buy 70 acres with two gas/oil wells on it. Build a duplex house, barn, workshop, and 2 acre lake. Put in a water well. Make certain you have lots of black powder, ammo, guns and bow/arrows. Be self-substaining and suficent. The only outside utilities are the cell phones and the satellite TV dish, and paying the counties property taxes.
We also have a bunch on rental properties that bring in money. Homes, especially foreclosures are a bargain to buy and then rent out. I predict there will be a new class of "modestly wealthy" people due to this forelousre mess--landlords.
Surprising at so few comments here...
I guess you're either Right or a Liberal. It amazes me to read the comments of unwavering defense for the Obama/Pelosi/Reid trilogy on other articles but somehow THIS gets passed over.
THIS IS THE PROBLEM. Blindly ignoring facts.
As I see our nation, 53% of the voters last time believe they are entitled to "help". I guess the other 47% of us are expected to pay for it. The sad reality that the 53% do not understand is that WE ALL will end up paying for this HUGE mistake. This "college experiment" in OBAMANOMICS. He has no other economic experience if anyone bothered to check.
OUR Government as a whole is broken but our current "leadership" in Washington is broken X TRILLIONS.
I keep hearing the spewage about a Clinton "surplus"? In 8 years the US debt rose 1.6 TRILLION. No wars, no natural disasters. Under GWB in 8 years with 911, Katrina, Ike, the debt rose 4 TRILLION. Under Obama/Pelosi/Reid the debt rose 1 TRILLION in just 3 MONTHS! Now the "White House" is saying 1.8 TRILLION in the 1st year but that doesn't include the so-called "Stimulus"/AGENDA spending dumped to 2010 or the losses from the failed bailouts or the TOXIC(hmm...legacy) assets?
Ya thought Clinton was a "slick-willie"?
I can only hope there's enough intelligence left in Americans to realize when they've been had. To qoute Margret Thatcher:
"The problem with socialism is that you eventually run out of other people's money".
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