** If you are looking for information on Minnesota’s current state budget deficit for 2009 –
check out our blog entry on the announcement of the $4.8 billion deficit. **
The federal deficit will hit a record $482 billion in 2009, according to Jim Nussle, director of the Office of Management and Budget. Factors behind the red ink cited by Nussle include the costs of the wars in Iraq and Afghanistan, tax rebates and a weak economy. The new deficit estimate is sharply higher than the administration’s $407 billion estimate made last February. The higher deficit will also mean increased interest payments on the growing national debt, which now exceeds $9 trillion.
This latest bad economic news comes as Congress prepares for important votes next year on whether to make temporary tax cuts from 2001 and 2003 permanent after 2010. It is becoming increasingly clear that making the tax cuts permanent is simply unaffordable. In fact, making the tax cuts permanent, along with adjusting the Alternative Minimum Tax, would cost $4.4 trillion over ten years…adding to our national debt that now exceeds $9 trillion.
– Steve Francisco