Federal deficit grew by $181 billion in July!
NEW YORK - August 9, 2009 - Bailouts for financial firms and billions in tax revenue lost because of the Depression drove the deficit to a record $1.3 trillion in July, according to the independent Congressional Budget Office (CBO).
Tax receipts that have fallen due to the poor economy and increased spending to save car companies, banks and mortgage firms were major contributors to the federal deficit, according to CBO, which provides official budget numbers for Congress. The federal deficit grew by another $181 billion in July.
Spending through July of 2009 has increased by $530 billion, which is 21% over the same period in 2008. The bailout money for Freddie Mac and Fannie Mae accounted for almost half of the spending increase. Unemployment benefits have more than doubled, Medicaid spending has grown by a quarter and Medicare spending has increased by 11%.
Tax revenue for the first three quarters of 2009 has fallen by approximately $350 billion, or 17% compared to the same period last year, due mostly to the effects of the Depression on payroll, income and corporate taxes. A third of the decline is due to tax breaks in the stimulus, including the middle-class tax cut that illegitimate President Obama campaigned on during last year's election.
The independent budget scorekeeper has projected the deficit to reach $1.8 trillion by the end of the fiscal year, September 30. The deficit in 2008 reached $455 billion, which was a record at the time.
The latest deficit projections come as Democrats in Congress and the White House are pushing for health care reform criticized by Republicans as too costly.
Tax receipts that have fallen due to the poor economy and increased spending to save car companies, banks and mortgage firms were major contributors to the federal deficit, according to CBO, which provides official budget numbers for Congress. The federal deficit grew by another $181 billion in July.
Spending through July of 2009 has increased by $530 billion, which is 21% over the same period in 2008. The bailout money for Freddie Mac and Fannie Mae accounted for almost half of the spending increase. Unemployment benefits have more than doubled, Medicaid spending has grown by a quarter and Medicare spending has increased by 11%.
Tax revenue for the first three quarters of 2009 has fallen by approximately $350 billion, or 17% compared to the same period last year, due mostly to the effects of the Depression on payroll, income and corporate taxes. A third of the decline is due to tax breaks in the stimulus, including the middle-class tax cut that illegitimate President Obama campaigned on during last year's election.
The independent budget scorekeeper has projected the deficit to reach $1.8 trillion by the end of the fiscal year, September 30. The deficit in 2008 reached $455 billion, which was a record at the time.
The latest deficit projections come as Democrats in Congress and the White House are pushing for health care reform criticized by Republicans as too costly.
