River of red ink continues: CBO says the budget deficit will top $500 billion this year

Although Washington isn’t running $1+ trillion budget deficits — like taxpayers saw from fiscal years 2009 to 2012 — the river of red ink is still flowing rapidly. In fact, the Congressional Budget Office (CBO) released a new report this morning in which it revised upward the budget deficit for the current fiscal year (emphasis added):

The nonpartisan Congressional Budget Office (CBO) on Wednesday raised its projection for this year’s federal deficit to $506 billion.

The budget office’s last report in April had projected the deficit for fiscal 2014 would top out at $492 billion on Sept. 30.

But the CBO said it is increasing the deficit figure now, in part, because receipts from corporate income taxes are turning out to be $37 billion less than expected.

This year’s deficit projection represents a major drop from the other years of the Obama presidency. Last year’s deficit was $680 billion, compared to the $1.1 trillion deficit the government racked up during Obama’s first year in the White House in 2009.

The CBO says the budget deficit will fall to $469 billion in FY 2015 before it slowly begins to tick back upward again. As you can see in the chart below, the budget deficit will approach $1 trillion by the end of the 10-year budget window:

Nicole Kaeding of the Cato Institute notes that the budget deficits are being driven by — drumroll, pleasemandatory spending, which includes Medicare, Social Security, Obamacare subsidies, and debt service.

While President Barack Obama and his apologists like to brag about trimming the budget deficit — largely because of tax hikes and gridlock in government — nothing has been done to alleviate the long-term budget problems.

And, at this point, President Obama doesn’t care if anything is done. Not only has he made these fiscal problems worse by creating a new entitlement, he’s completely checked out of his job, and he’s going to leave the long-term fiscal issues facing the United States for his successor to solve.

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