White House: Budget deficit to top $1.8 trillionThe deficit quadruples in 2009, then will likely triple again in 2010?
WASHINGTON (AP) -- Mirroring the unprecedented red ink flowing from America's deep recession, the deficit for the current budget year will rise by $89 billion to $1.84 trillion -- about four times the record set just last year.
The budget also reflects the costs incurred for the Wall Street bailout, President Barack Obama's economic stimulus bill, as well as a structural imbalance between what the government spends and what it takes in.
For the current fiscal year that ends on Sept. 30, the government would borrow 46 cents for every dollar it takes to run the government under the administration's plan. In one of the few positive signs, the actual 2009 deficit is likely to be $250 billion less than predicted because Congress is unlikely to provide another $250 billion in financial bailout money.
The developments come as the White House completes the official release of its $3.6 trillion budget for 2010, adding detail to some of its tax proposals and ideas for producing health care savings. The White House budget is a recommendation to Congress that represents Obama's fiscal and policy vision for the next decade.
I love the last sentence: "The White House budget is a recommendation to Congress that represents Obama's fiscal and policy vision for the next decade."
It seems less a vision than a nightmare.