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Another debt ceiling debacle could sink the economy

Last year's Congressional debt standoff hurt consumer confidence more than the collapse of Lehman Brothers, Betsey Johnson and Justin Wolfers write. This time could be worse.  Read more at Counterparties  

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U.S. set for fourth year of $1 trillion-plus deficit: CBO

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A trader works on the floor of the New York Stock Exchange January 4, 2012. REUTERS/Brendan McDermid

A trader works on the floor of the New York Stock Exchange January 4, 2012.

Credit: Reuters/Brendan McDermid

WASHINGTON | Tue Jan 31, 2012 11:03am EST

WASHINGTON (Reuters) - The United States is on track for a fourth straight year with a $1 trillion-plus budget deficit as a sluggish economy holds down corporate tax revenues, congressional forecasters said on Tuesday, but they warned that extension of payroll tax cuts would swell the gap even more.

The non-partisan Congressional Budget Office said the fiscal 2012 deficit would rise to $1.079 trillion from its previous estimate of $973 billion made last August. The U.S. posted $1.3 trillion deficits in each of the past two years after a record $1.4 trillion deficit in fiscal 2009, President Barack Obama's first year in office.

(Reporting By David Lawder; Editing by Neil Stempleman)
U.S.
Politics
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Comments (4)
AdamSmith11 wrote:
Heck of a job, Barry. You and your cronies in Congress are moving this country to third world status as fast as you can. But the good news is it will be a “fair” march to ruin. ABO 2012.

Jan 31, 2012 10:31am EST  --  Report as abuse
Persuter wrote:
Adam, you do realize the Republicans are in control of the House, which in conjunction with the Senate, passes the tax and appropriations bills which result in this spending? Barack Obama spends what the Congress authorizes him to spend and not a dime more.

Jan 31, 2012 10:51am EST  --  Report as abuse
texoman wrote:
AdamSmith11- People like you are either idots or just liars! Our march to third world status began in year 2000, not 2009, when we let George Bush steal the presidency. He and his cronies took this country down with lies to get us into two unfunded wars and an unfunded drug benefit while at the same time reducing taxes on everyone!

Jan 31, 2012 11:48am EST  --  Report as abuse
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