Economy Alarm: Democrats’ “Fiscal Responsibility” Leads to Biggest Budget Deficit in Half a Century

Democrats’ “Fiscal Responsibility” Leads to Biggest Budget Deficit in Half a Century

Deficit Now Nearly 10% of Nation’s Economy Thanks to Dems’ Runaway Spending Spree

Democrats Promised Fiscal Responsibility, Budget Discipline, Accountability

“Our federal budget should be a statement of our national values. One of those values is fiscal responsibility. Democrats are committed to ending years of irresponsible budget policies that have produced historic deficits…We are committed to auditing the books and subjecting every facet of federal spending to tough budget discipline and accountability, forcing the Congress to choose a new direction and the right priorities for all Americans.” (Nancy Pelosi’s “A New Direction for America, Page 25)

Credibility Crash: Dem Policies Lead to Biggest Deficit Since 1945

The U.S. government ended its 2009 fiscal year with a deficit of $1.4 trillion, the biggest since 1945, the Congressional Budget Office reported.

The deficit amounted to 9.9 percent of the nation’s economy, triple the size of the shortfall for 2008.

The nonpartisan CBO said yesterday the government was squeezed on both sides of the budget ledger in the fiscal year that ended Sept. 30. Tax revenue fell by $420 billion, or 17 percent, to the lowest level in more than 50 years.

Individual income taxes, the biggest source of tax receipts, fell by 20 percent, the agency said. Corporate income taxes dropped by 54 percent, reflecting the slow economy.

At the same time, federal spending rose by 18 percent, the CBO said. About half of the spending increase, $245 billion, was driven by the costs of bailing out the financial industry and taking over mortgage financiers Fannie Mae and Freddie Mac.

The spending increases and tax cuts included in the economic stimulus package approved in February added almost $200 billion to the 2009 deficit, the CBO said. (Brian Faler and Julianna Goldman, “U.S. Deficit for 2009 Totals $1.4 Trillion, Budget Office Says,” Bloomberg, 10/8/09)

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