Since he’s been in office, President Barack Obama has constantly railed against higher-income earners and talked about the need for tax hikes. Throughout the course of the “fiscal cliff” discussion, Obama stressed the need for a “balanced approach,” meaning a combination of tax hikes and spending cuts.
However, the “fiscal cliff” deal that was passed by Congress yesterday is horribly unbalanced — cutting spending by $1 for every $41 of tax hikes — and costs upwards of $4 trillion. But Zero Hedge put out this chart this morning that really puts it all in perspective:
You may have heard at the end of last week that gross domestic product (GDP) grew by 2.2% in the first quarter of 2012. While the number is still good news, showing our economic is growing, the rate of growth was much lower than anticipated, leading many to fear that our recovery may continue on the slow trend we’ve seen in the last two years.
However, what hasn’t been mentioned much is the rate of growth in the national debt in the first quarter. It’s no secret that the United States government is still hemoraging money, creating a river of red ink from Washington. And while we may have some growth in the economy, fiscal concerns seem like an afterthought to many in the nation’s capital.
That’s not a pretty sight, folks.
Nearly two weeks ago, the Congressional Budget Office (CBO) issued a report on the budget outlook for this year, noting that taxpayers can expect yet another trillion dollar deficit — $1.08 trillion, to be exact, under President Barack Obama. But a new estimate from the White House from the yet to be released budget proposal shows a slightly higher deficit — $1.33 trillion — than the CBO, showing that the Obama Administration has no intention of reducing the red ink flowing out of Washington:
President Obama’s Monday budget request to Congress will forecast a fiscal year 2012 deficit of $1.33 trillion and will include hundreds of billions of dollars in proposed infrastructure spending, The Wall Street Journal reported on Friday.
The projected deficit is higher than 2011’s $1.296 trillion deficit and slightly higher than the Congressional Budget Office’s roughly $1.15 trillion projection released last week. The budget, according to draft documents viewed by Dow Jones Newswires and The Journal, will forecast a $901 billion deficit for fiscal 2013, which would be equivalent to 5.5 percent of gross domestic product. That is up from the White House’s September forecast of a deficit of $833 billion, or 5.1 percent of GDP, the newspaper said.
According to The Journal, the White House’s projected 2012 deficit would be about 8.5 percent of GDP.