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The deficit in 2009 was $1.4 trillion. Technically that year falls under George Bush’s administration, but $800 billion was the stimulus plan passed by Obama and the Democrats. So to be fair, let us assume that what Obama meant by cutting the budget in half by the end of his first term was half of $600 billion ($300 billion). According to the CBO, the deficit at the end his first term, fiscal year 2013 will be $977 billion.
That wasn’t the only frightening fact released by the CBO today.
- The deficit in 2012 would equal $1.3 trillion (or 8.1 percent of gross domestic product), $82 billion more than the 2012 deficit projected in CBO’s baseline.
- In 2013, the deficit would decline to $977 billion (or 6.1 percent of GDP), $365 billion more than the shortfall projected for 2013 in CBO’s baseline.
- The President’s budget contains a host of proposed changes to spending and revenue policies. By CBO’s estimate, those policy changes would, on net, add about $2.9 trillion to projected deficits over the 2013–2022 period and necessitate $0.6 trillion in additional interest payments (because of increased federal borrowing). Most of the net budgetary impact would come from changes in tax policies, but changes in spending policies would also play a role:
Upon reading the report House Budget Committee Chairman Paul Ryan said;
Chairman Ryan is too polite, what he is really saying is “we’re screwed.” The United States is growing further and further in debt. In the eight years before Barack Obama took office, President Bush increased the debt more than every President who came before him–combined. In less than half the time, Barack Obama has blown through Bush’s debt record and is looking to continue adding to his numbers in the four years to come.
His promise that he would reduce the budget is as reliable as his promise that people will be able to keep their heath insurance under Obamacare (not at all).
The American economy is in danger of collapsing under its own debt. Barack Obama has done nothing to stem the tide of run-away spending and deficits and based on his budget he doesn’t plan to very soon.
The CBO report is embedded below: