U.S. accrues 4th straight year with $1T deficit
2012 budget year improves over Obama's first 3 years
WASHINGTON — The United States has now spent $1 trillion more than it's taken in for four straight years.
The Treasury Department confirmed Friday what was widely expected: The deficit for the just-ended 2012 budget year — the gap between the government's tax revenue and its spending — totaled $1.1 trillion.
It wasn't quite as ugly as last year.
Thanks to a slightly healthier economy, revenue rose 6.4 percent from 2011. And government spending fell 1.7 percent to $3.5 trillion. That reflected, in part, less defense spending as U.S. military involvement in Iraq was winding down and less spending on Medicaid.
As a result, the deficit shrank 16 percent, or $207 billion.
A stronger economy meant more people had jobs and income that generated tax revenue. Corporations also contributed more to federal revenue than in 2011.
Barack Obama's presidency has now coincided with four straight $1 trillion-plus annual budget deficits — the first in history and an issue in an election campaign that ends in 3½ weeks.
When Obama took office in January 2009, the Congressional Budget Office forecast that the deficit that year would total $1.2 trillion. It ended up at a record $1.41 trillion. The increase was due, in part, to higher government spending to fight the worst recession since the Great Depression.
- Verizon buys Yahoo for $4.83B, marking end of...
- Historic solar flight marks first...
- Judge set to decide on $15B Volkswagen...
- Former Oregon lumber town rides digital wave...
- US home prices rise at steady pace as sales...
- Stocks waver as investors monitor company...
- Why workers aren't taking vacation time, and...
- Provo airport expansion could provide up to...
- Get all your outdoors work done by... 13
- Provo airport expansion could provide... 5
- Verizon buys Yahoo for $4.83B, marking... 3
- Historic solar flight marks first... 1
- Why workers aren't taking vacation... 1
- 5 things to do when quitting your job 1
- Panel recommends options to reduce... 1
- Judge set to decide on $15B Volkswagen... 0