President Obama believes that we need to spend more and that the spending should be on government union jobs which do not create jobs or profits. We tried this with the first stimulus and while it was temporarily effective, it permanently increased our debt.
According to Reuters, our deficit in May, which was $125 billion for that month alone, has more than doubled from May of last year.
CNBC report on this year’s deficit –
CNBC: The federal budget deficit is approaching $1 trillion for a fourth straight year even though the government is collecting more tax revenue than last year.
The Treasury Department said Tuesday that the deficit grew by $124.6 billion in May. That put the deficit through the first eight months of the budget year at $844.5 billion, or 8.9 percent below last year’s imbalance for the same period.
Still, the Congressional Budget office forecasts that the deficit for the entire 2012 budget year, which ends Sept. 30, will total $1.17 trillion. That’s only a slight improvement from the $1.3 trillion deficit recorded in fiscal 2011. And it is certain to keep the federal budget near the center of the presidential campaign.
So far this year, government receipts are running 5.3 percent higher than a year ago. A better job market and modest economic growth have led to higher tax revenue.
Receipts in May totaled $180.7 billion, the second-largest tax take for the month of May.
Rising tax collections have also helped state governments. U.S. states expect to collect higher tax revenue in the coming budget year that combined will top the collections being received before the recession, according to the findings of a survey released Tuesday by the National Governors Association and the National Association of State Budget Officers.
The extra tax revenue hasn’t cooled the budget debate in Washington..Read more…