The Congressional Budget Office estimates the U.S. will report nearly a trillion dollar deficit for the first nine months of fiscal year 2012.
In its “monthly budget review,” the CBO reports that the Treasury Department has accrued a $905 billion deficit throughout the first three quarters of the fiscal year, which began on Oct. 1, 2011. The deficit was $66 billion less than the $971 billion deficit incurred over the same period of fiscal 2011.
The deficit was lower because spending was about one percent higher than 2011, while revenues were five percent higher than at this point last year.
The brunt of revenue increases came from corporate income taxes, which grew by $42 billion from last year, by 31 percent. Personal income taxes grew by $26 billion, or 6 percent.
Spending decreased in programs like Medicaid and unemployment benefits. Education program spending fell by $27 billion, or 36 percent, while defense spending saw a decrease of $16 billion, or about 4 percent.
Programs that got increased spending were Toxic Asset Relief Program (TARP), Social Security, Medicare and veterans’ programs.
The release of the report comes on the heels of the President Barack Obama’s request to Congress to continue the tax cuts for people making under $250,000 a year, while raising taxes on those earning more than a quarter million dollars. The president still maintains that taxes on the wealthiest two percent of Americans, however, should increase so they can “pay their fair share.”
In its “monthly budget review,” the CBO reports that the Treasury Department has accrued a $905 billion deficit throughout the first three quarters of the fiscal year, which began on Oct. 1, 2011. The deficit was $66 billion less than the $971 billion deficit incurred over the same period of fiscal 2011.
The deficit was lower because spending was about one percent higher than 2011, while revenues were five percent higher than at this point last year.
The brunt of revenue increases came from corporate income taxes, which grew by $42 billion from last year, by 31 percent. Personal income taxes grew by $26 billion, or 6 percent.
Spending decreased in programs like Medicaid and unemployment benefits. Education program spending fell by $27 billion, or 36 percent, while defense spending saw a decrease of $16 billion, or about 4 percent.
Programs that got increased spending were Toxic Asset Relief Program (TARP), Social Security, Medicare and veterans’ programs.
The release of the report comes on the heels of the President Barack Obama’s request to Congress to continue the tax cuts for people making under $250,000 a year, while raising taxes on those earning more than a quarter million dollars. The president still maintains that taxes on the wealthiest two percent of Americans, however, should increase so they can “pay their fair share.”
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