2009 Record Deficit Estimate Increases-$407B to $490B

[babylonsister]

Record deficit expected in 2009


By Richard Wolf, USA TODAY


WASHINGTON — The White House has increased its estimate for next year's deficit to nearly $490 billion, a record figure that will saddle the next president with deepening budget problems in his first year in office, a report due out Monday shows.

The projected deficit for the fiscal year that begins Oct. 1 is being driven higher by the continuing economic slowdown and larger-than-anticipated costs of the two-year, $168 billion fiscal stimulus package passed by Congress, said two senior administration officials with direct knowledge of the report. In February, President Bush predicted the 2009 deficit would be $407 billion.

The budget update shows this year's deficit headed under $400 billion, at least $10 billion less than projected, according to the two officials. That's partly because tax revenue held up reasonably well despite the weaker economy.

The rising deficit for 2009 marks a sharp turnaround for Bush's fiscal legacy. He inherited a $128 billion surplus when he came into office in 2001. It soon turned to red ink because of a recession, the Sept. 11 attacks and the war on terrorism.

Curbing the deficit will fall to Bush's successor and the next Congress following a time when taxes were cut and major spending initiatives were undertaken, including the wars in Iraq and Afghanistan, transportation projects, farm subsidies, Medicare prescription drug coverage and a recently passed expansion of veterans' education benefits.

more...

http://www.usatoday.com/news/washington/2008-07-27-deficit_N.htm

[wellst0nev0ter]

1. Typical Bushian Tactic

They inflate the budget deficit forcasts, and when the actual deficits turn out not to be so stratospheric, they publicly pat themselves on the back telling people they've solved the budget deficit by leaving a smaller (yet still substantial) deficit.

The day these clowns leave office can never be too soon.

[yy4me]

2. With this information alone, how can anyone even begin to

think that this current administration has done anything but harm to this country. Add this deficit to the already allocated and spent monies, I wonder what the real total of the republican mess has cost us. What's just a few trillion here and there between our Washington gang? The rest of us can't even figure out how we are going to buy gas or heat our homes this winter, let alone the little things like food for the table.

It disgusts me to no end. I will never vote for a repub as long as I live. I will never have a good word for a Congress that allows something like this fiasco of an administration to remain unchecked.

We have all been duped, slowly at first, then with rapid speed into this deficit hell for which my grandchildren will still be paying.

Is there a lucid reason why we must allow this to continue?

It is too late now to do anything about the funds that are gone but it is not too late to impeach these evil monsters who have done this to us.

[SpiralHawk]

3. The putrid fruit of 'conservative' republiconomics

Ptooey. When republicons use the word 'conservative' to describe themselves, it is just another one of their Orwellian mindf*ck propaganda ploys.

In truth, republicons are radically greedy, radically corrupt, and radically incompetent.

[salin]

4. remember when he promised a balanced budget (after his tax cut) before the end of his second term?

then it was moved to by 2010. Of course it was pointed out here that the only way the math worked to balance the budget was to sunset his taxcuts. But now, even just that alone won't take care of the massive short falls - and I believe these numbers do not include much of the spending on Iraq and Afghanistan.

When will the GOP admit they have become the "free lunch" (for corporations and the rich) party. But of course we know there is no such thing as a free lunch - just a growing bill that will be passed on to future generations.

[Blarch]

5. not counting the SS money they take.

This is absurd. Carter added about 280 billion to the national debt in 4 years. Jr. is adding 500 billion every year.

Make it stop.