Federal Budget Deficit Will Hit $1,000,000,000,000 For 5th Straight Year
Well, at least we’re being consistent:
The U.S. annual budget deficit is on track to reach $1 trillion for a fifth straight year, though government revenue jumped last month as people paid some taxes early to avoid higher rates in 2013.
The Treasury Department said Friday that the federal deficit grew just $260 million in December. But for the first three months of the budget year, the deficit widened to $292 billion.
The government has run annual deficits for more than a decade, although President Barack Obama’s presidency has coincided with four straight $1 trillion-plus deficits.
The deficit reached a record $1.41 trillion in budget year 2009, which began four months before Obama was inaugurated. That deficit was largely because of the worst recession since the Great Depression. Tax revenue plummeted, while the government spent more on stimulus programs.
The budget gaps in 2010 and 2011 were slightly lower than the 2009 deficit as a gradually strengthening economy generated more tax revenue.
Of course, we could avoid hitting $1 trillion for the fifth straight year if Congress and the President get their act together and reach a long term budget deal. Said deal will be announced by a parade of unicorns down Pennsylvania Avenue.