Deficit grew by $181 billion in July

[girl gone mad]

Deficit grew by $181 billion in July
http://thehill.com/leading-the-news/deficit-grew-by-181-billion-in-july-2009-08-09.html">The Hill

Bailouts for financial firms and billions in tax revenue lost because of the recession drove the deficit to a record $1.3 trillion in July, according to the independent Congressional Budget Office (CBO).

Tax receipts that have fallen due to the poor economy and increased spending to save car companies, banks and mortgage firms were major contributors to the federal deficit, according to CBO, which provides official budget numbers for Congress. The federal deficit grew by another $181 billion in July.

Falling tax receipts and increased spending on bailouts for auto companies and the financial sector and for the economic stimulus package added to the deficit, according to CBO, which provides official budget numbers for Congress.

Spending through July of 2009 has increased by $530 billion, which is 21 percent over the same period in 2008. The bailout money for Freddie Mac and Fannie Mae accounted for almost half of the spending increase. Unemployment benefits have more than doubled, Medicaid spending has grown by a quarter and Medicare spending has increased by 11 percent.

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Our excessively generous financial bailouts are biting us in the ass at the precise moment we are trying to pass health care reform.

[prostomulgus]

1. Let's not forget who's to blame for these deficits.

This is Bush's last budget and it won't end until Sept. 30. Thus, ALL of these deficits are his fault. President Obama and Congressional Dems did not cause these deficits.

Besides, why are the repukes suddenly screaming about the deficit? They cheered bush on as he ran up deficits every year. NOW they're concerned? I don't believe it.

[girl gone mad]

2. Correct.

Bush is responsible for $1.2 Trillion of the debt, and he would definitely have extended the AMT change as well as the Iraq/Afghanistan supplementals, so this is essentially Bush's budget. Republicans need to be reminded of that at every opportunity.

[libguy9560]

3. Ouch, that's really painful

Wonder when things will start to improve...

[Yupster]

4. Tax revenues have got to be going down each month

as people lose their jobs or work fewer hours.

Maybe we'll get some extra capital gains since the stock market's been up.