Here is a video report outlining President Obama's budget for fiscal year 2011 (begins Oct. 1) that projects a nearly $1.6 Trillion Deficit for 2010, and massive deficits for years into the future:
WASHINGTON—The U.S. will post a budget deficit of $1.267 trillion in fiscal 2011, the White House said Monday, in a $3.834 trillion budget that looks to strike a balance between spurring job creation in the near term and addressing the nation's fiscal woes over the next decade.
The Obama administration's budget request, set for release at 10 a.m. EST, but previewed for reporters late Sunday, calls for $1.2 trillion in deficit reduction over the next 10 years, largely through a proposed fee on big banks, the elimination of tax preferences for oil, gas and coal companies, a three-year freeze on nonsecurity discretionary spending, and the expiration of Bush-era tax cuts for wealthier households.
In the current fiscal year, which ends in September, the White House projects a budget gap of $1.556 trillion, or 10.6% of gross domestic product. That's slightly larger than the $1.502 trillion deficit the administration forecast in August for fiscal 2010. In fiscal 2009, the deficit was $1.413 trillion, or 9.9% of GDP.
Next year, the $1.267 trillion deficit would amount to 8.3% of GDP, a level that the White House predicts will gradually decline to 3.9% by fiscal 2014. The deficit wouldn't drop to President Barack Obama's goal of 3% of GDP by the end of his term, but would meet another goal of halving the gap that existed when he took office. . . . MORE