WASHINGTON — The federal government faces exploding deficits and mounting debt over the next decade, White House and congressional budget officials projected Tuesday in competing but similar economic forecasts.
Both the White House Office of Management and Budget and the nonpartisan Congressional Budget Office predicted the budget deficit this year would swell to nearly $1.6 trillion, a record, and far above the then-record 2008 budget deficit of $455 billion.
But while figures released by the White House foresee a cumulative $9 trillion deficit from 2010-2019, $2 trillion more than the administration estimated in May, congressional budget analysts put the 10-year figure at a lower $7.14 trillion.
One reason for the difference: The CBO projection is based on an assumption that all the tax cuts put into place in the administration of former President George W. Bush will expire on schedule by 2011 as dictated by current law. President Barack Obama's budget baseline, however, hews to his proposal to keep the tax cuts in place for families earning less than $250,000 a year.
Beyond the 10-year forecast, the nation will face further challenges posed by rising health care costs and the aging of the population, the CBO said. "The budget remains on an unsustainable path" over the long-term and will require some combination of lower spending and higher tax revenues, it said.
Both forecasts see unemployment rising to 10 percent before falling and both suggest growth will return to the economy later this year but that recovery will be slow after the longest and deepest recession since the 1930s
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8 comments:
Unemployment is already way higher than 10%, remember people we are paying 800 million a week to Communist China for interest on the loans we already have with them. Soon it will be a Billion dollars a week in interest alone. We have been sold out.
it's over. Ban together now in tribes for your own safety and start preparing for winter. No electric or heat. Get those wood stoves ready.
Thanks Obama, Kratovile, and the Democrat party.
We are finished , at least you guys are. I'm prepared and have been since the election. Lock and load , I will enjoy the outcome.
Let er roll baby ,save your flac jackets and your helmets.
Hope and change
1:47 Anon
Really? REALLY?
Better look at some Republicans too.
If we hadn't gone to Iraq, this country would have money!
I think his approval ratings have gone down because he promised us change, and all we got is change...(coins-leftovers). Terrible!!! Now, that’s all we are left with..some pocket change.
congress cannot project toilet paper to it's arse.
noticed the "record" projections for this year alone?
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