Deficit reduction target reached, but no one's happy
By David Lauter, Washington Bureau
March 4, 2013, 3:00 a.m.
President Obama and congressional Republicans went through their first round of cutting in 2011, shaving about $1.5 trillion from federal spending. The "fiscal cliff" deal in January brought another $720 billion, mostly in higher taxes on the wealthy.
Now the automatic spending reduction package known as the sequester is projected to cut spending by about another $1 trillion over the decade, with some $85 billion coming this year. Those changes in spending and taxes will save the government an additional $700 billion in interest over the decade by reducing the need to borrow money, bringing the overall total to more than $3.9 trillion.
The deficit hit its peak in 2008 and has begun to shrink rapidly.
Red ink totaled $1.2 trillion last year, will fall to about $900 billion this year and will drop to about $476 billion by the end of Obama's second term, according to the Congressional Budget Office. Though still a large number, that's less than 3% of the huge U.S. economy, a share below the level most economists consider threatening.
Monday, March 04, 2013
But according to this LA Times article, we now have enacted $3.9 trillion in cuts for this decade:
Posted by Steve J. at 11:52 AM