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Federal Deficit To Dip To $1.1 Trillion, Report Says
A new report predicts the federal deficit will dip to $1.1 trillion.
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WASHINGTON (January 31, 2012)—A Congressional Budget Office report predicts the government will run a $1.1 trillion deficit in the fiscal year that ends in September, a slight drop from last year, but still alarmingly high.
The CBO report also says annual deficits will remain in the $1 trillion range for the next several years if Bush-era tax cuts slated to expire in December are extended.
The CBO study also predicts modest economic growth of 2 percent this year and says the unemployment rate will remain above 8 percent this year, but that's based on the assumption that
President Barack Obama will fail to win renewal of payroll tax cuts and jobless benefits by the end of next month.
The deficit would require the government to borrow 30 cents of every dollar spent.
