U.S. budget deficit totals $974B through July

(AP) WASHINGTON - The U.S. federal budget deficit increased $70 billion in July and is on track to top $1 trillion for the fourth straight year.

The deficit for the first 10 months of the 2012 budget year, which ends Sept. 30, totaled $974 billion, the Treasury Department said Friday. That's 11.5 percent less than in the same period last year. A slightly better economy has boosted income tax receipts.

Still, President Barack Obama will almost certainly face re-election after running $1 trillion deficits each year in office. Republican candidate Mitt Romney has criticized Obama for failing to cut the deficit in half, as he pledged to do during his 2008 campaign.

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The White House last month forecast that the budget gap will total $1.2 trillion this year, down from $1.3 trillion in 2011.

This year's gap is equal to about 7.8 percent of the U.S. economy, down from 8.5 percent in 2011. The Obama administration expects the deficit to fall just under $1 trillion next year, to $991 billion.

Obama and congressional Republicans are at odds over how much to spend, where to cut and whether tax increases should be on the table. Republicans control the House, while Democrats have a slim majority in the Senate.

That gridlock could push the U.S. economy over the "fiscal cliff" at year's end. That's when tax increases and deep spending cuts will take effect unless Congress reaches a budget agreement.

Both parties oppose the automatic spending reductions because they include deep cuts in defense. If the tax increases and spending cuts take effect, many economists say a recession could follow.

Obama has proposed letting tax cuts approved in 2001 and 2003 expire for couples making more than $250,000. That would generate more than $700 billion over 10 years. He also wants to set a 30 percent tax rate on taxpayers making more than $1 million. That would add $47 billion to government revenue over 10 years.

Republicans have rejected the tax increases and want deeper cuts in government programs. The Republican-controlled House has approved a budget that calls for deep cuts in Medicare, the federal insurance program for seniors and disabled people, and other programs and a new round of tax cuts.

Romney has also promised to cut spending in order to reduce the budget gap. He has proposed to cap spending at 20 percent of gross domestic product. GDP is the broadest measure of the economy's output. Spending currently equals about 24 percent of GDP.

Romney hasn't specified many of the cuts he would make, but has proposed reducing the federal government workforce by 10 percent and eliminating $1.6 billion in Amtrak subsidies.

[sjc_1]

The president proposes a budget and signs the budget, it is up to Congress to come up with the final budget, so look to the House of Representatives where spending matters begin and end. Who runs the House? Oh, that is right, now we know who to blame.

[payasyougo]

"Both parties oppose the automatic spending reductions because they include deep cuts in defense..." BOTH parties continue to write and pass legislation full of lies of spending reduction that they know they will never follow through with. I see the Republicans addressing their own with their Tea Party movement. How are the Democrats correcting their own?

[mjvwsr]

Our grandchildren will **** on our graves.

[louiville2_2]

"Promise Broken rulings on the The Obameter"

http://www.politifact.com/truth-o-meter/promises/obameter/rulings/promise-broken/

FYI four pages of broken promises, we fired Bush Sr. for breaking ONE promise "no new taxes" what should we do with Obama who is a massive con man who will say anything to get re-elected!!!

[hypnotoad72]

Like that's news... this deficit game has been going on almost as long as corporate welfare has... and the solutions are simple - cut off all welfare to corporations that leave or gut this country. Why reward them when we have enough of our own people suffering, without jobs, hope, or anything else... and millions of others facing that in the future thanks to these silly games...

[formerlyluvnut]

Obama WOULD have tackled this if the repubs in Congress would have let him. Nobody to blame but them, NOT Obama.

[hypnotoad72]

I love it how the right-wingers always blame solely the Democrats, yet conveniently forget stuff like:

http://www.govtrack.us/congress/vote.xpd?vote=s2003-202

[mjvwsr]

Firday afternoon news dump. Nobama & cBS

[hypnotoad72]

So you're giving a pass to Bush II, Bush I, Reagan, and Ford?

So, what will Romney do any differently? Answer that or don't bother being taken seriously. Based on your current post, you're not entitled to be taken seriously right now either...