The Herald Bulletin

Afternoon Update

Breaking News

February 5, 2013

CBO: Budget deficit estimated at $845B

WASHINGTON — A new government report is predicting the budget deficit will drop below $1 trillion for the first time in President Barack Obama's tenure in office.

The Congressional Budget Office analysis released Tuesday says the government will run a $845 billion deficit this year, a modest improvement compared to last year's $1.1 trillion shortfall but still enough red ink to require the government to borrow 24 cents of every dollar it spends.

The agency also projects that the economy will grow just 1.4 percent this year if $85 billion in across-the-board spending cuts take effect as scheduled March 1. Unemployment would average 8 percent. Obama wants to ease the cuts by replacing them with new tax revenue and alternative cuts, but a clash is looming with Republicans who insist that last month's tax increase on wealthier earners will be the last tax hike they permit.

The report predicts the deficit would dip to $430 billion by 2015, the lowest since the government posted a $459 billion deficit is former President George W. Bush's last year in office. That would be a relatively low 2.4 percent when measured against the size of the economy. But deficits would move higher after that and again reach near $1 trillion in the latter portion of the 10-year window — despite the recently enacted tax increase on family income exceeding $450,000 and automatic spending cuts of about $100 billion a year. The package of spending cuts and tax increases are punishment for Washington's failure to strike a long-term budget pact.

Over the coming decade, the deficit would total $7 trillion.

The economy will grow slowly in 2013 and more rapidly next year, with unemployment projected to stay high, according to the report.

This year's growth is being hampered by a tax increase enacted in January and by automatic spending cuts scheduled to take effect this spring. CBO projects the economy will grow by just 1.4 percent this year but recover to 3.4 percent next year.

Text Only
Breaking News
  • First lady announces one-stop job site for vets

    To help veterans leaving the military as it downsizes, the government on Wednesday started a one-stop job-shopping website for them to create resumes, connect with employers and become part of a database for companies to mine.

    April 23, 2014

  • US weighs clemency for inmates jailed for 10 years

    The Obama administration is encouraging many nonviolent federal prisoners to apply for early release — and expecting thousands to take up the offer. It's an effort to deal with high costs and overcrowding in prisons, and also a matter of fairness, the government says.

    April 23, 2014

  • Michigan man among 1st in US to get 'bionic eye'

    Thanks to a high-tech procedure that involved the surgical implantation of a "bionic eye," Roger Pontz has regained enough of his eyesight to catch small glimpses of his wife, grandson and cat.

    April 23, 2014

  • Airport security vulnerabilities not uncommon

    For all the tens of billions of dollars that the nation has spent on screening passengers and their bags, few airports made a comparable investment to secure the airplanes themselves.

    April 23, 2014

  • Missouri executes inmate for 1993 farm slaying

    Missouri executed an inmate early Wednesday only a few miles from the farm where prosecutors say he orchestrated the 1993 killing of a couple whose cows he wanted to steal.

    April 23, 2014

  • Pro-Russian insurgents hold US journalist captive

    Pro-Russian gunmen in eastern Ukraine admitted on Wednesday that they are holding an American journalist, saying he was suspected of unspecified "bad activities."

    April 23, 2014

  • Beautiful Bulldogs.jpg Lucey is tops in Iowa's 'Beautiful Bulldog' event

    Lucey is a slobbering 18-month-old pooch whose human family dreams of making her a therapy dog.

    April 23, 2014 1 Photo

  • IndyCar puts Castroneves on probation through June

    IndyCar has put Helio Castroneves on probation through June because he violated the series' social media policy.

    April 23, 2014

  • Sherpas leave Everest; some expeditions nix climbs

    Sherpa guides packed up their tents and left Mount Everest's base camp Wednesday in an unprecedented walkout to honor 16 of their colleagues who were killed last week in the deadliest avalanche ever recorded on the mountain, climbers said.

    April 23, 2014

  • FBI investigates suspected serial child molester

    The FBI asked for the public's help Tuesday to identify at least 90 potential victims of a suspected child predator who worked at 10 American and other international schools abroad for more than four decades before committing suicide last month in Minnesota.

    April 22, 2014

Featured Ads
More Resources from The Herald Bulletin
AP Video
U.S. Paratroopers in Poland, Amid Ukraine Crisis US Reviews Clemency for Certain Inmates Raw: Violence Erupts in Rio Near Olympic Venue Raw: Deadly Bombing in Egypt Raw: What's Inside a Commercial Jet Wheel Well Raw: Obama Arrives in Japan for State Visit Raw: Anti-Obama Activists Fight Manila Police Motels Near Disney Fighting Homeless Problem Michigan Man Sees Thanks to 'bionic Eye' Obama to Oso: We'll Be Here As Long As It Takes Bon Jovi Helps Open Low-income Housing in Philly S.C. Man Apologizes for Naked Walk in Wal-Mart New Country Music Hall of Fame Inductees Named 'Piles' of Bodies in South Sudan Slaughter SCOTUS Hears Tv-over-Internet Case Chief Mate: Crew Told to Escape After Passengers
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium
Front page
Poll

Do you plan to attend any of the local Little 500 Festival events in May?

Yes
No
What events?
     View Results