CNN: Deficit To Hit $400B (up from lowball $341B lie told in July)

[stopbush]

They blame Katrina, of course. Time to cut taxes on the rich...again.


WASHINGTON (Reuters) -- The White House said on Thursday deficit spending in the 2006 budget would soar above $400 billion, well over a July forecast, and the election-year jolt was blamed largely on Hurricane Katrina costs.

The new deficit projection was likely to further intensify a debate leading up to mid-term elections in November on whether to renew President George W. Bush's tax cuts that he says are essential for economic growth but which Democrats say are a drain on the budget.

A July forecast had projected the 2006 budget deficit at $341 billion. Kaplan said preliminary calculations indicate the deficit will exceed $400 billion, or 3.1 percent of gross domestic product.

http://www.cnn.com/2006/POLITICS/01/12/bush.budget.reut/index.html

[firefox]

1. But government revenues have never been higher.

The $400 billion is also misleading because of the unified budget reporting that means the Social Security surplus is used to offset the general fund.

Somebody could do us a big favor if they could find the projected surpluses for Social Security. Those surpluses will be taking a big hit when people born in 1946 turn 62 in 2008.

The national debt clock- http://www.brillig.com/debt_clock/

[dtotire]

2. Half the deficit will be financed by foreigners

The sad part is that around half of the deficit will be financed by foreigners--chiefly China and Japan.

[acmejack]

3. Better trim those nasty entitlement programs a little more.

Real Americans want to stand on their own two feet without healthcare as they cheer on their paradoxical military, at the most expensive in the world, anyway.

[mod mom]

4. Where are the "fiscally conservative" Republicans? I guess that was

just another false pretense. Remind me again, who left a huge surplus?

[Donkeykick]

5. Hmm... hard one; let me guess

[TheGunslinger]

7. Ya know, Clinton managed to balance the budget, essentially, for *3* years

* hasn't balanced it ONCE!

[Telly Savalas]

8. This is what "fiscal conservatism" looks like.

It's been 50 years since a Republican president has signed a balance budget.

We need fiscal liberals in charge.

[TheGunslinger]

6. I thought Katrina/Rita costs were going to hit $100 billion, at least?

Wouldn't the deficit be at least $441 billion? I know they didn't cut $40 billion of pork in ONE year.

Oh, maybe some of that money for Katrina came off of FY2005...n/m

;)