January 31, 2012 / 3:09 PM / 8 years ago

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

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

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

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