CBO Releases Final Budget Totals for 2012. Check Out The Ugly Facts:
A recent article in the Wall Street Journal on November 12, 2012 reviewed the budget totals for fiscal 2012 and summarized the unsettling details.
“While the rest of America was holding an election last week, the gnomes at the Congressional Budget Office released the final budget totals for fiscal 2012. They’re worth reporting because they illuminate the real fiscal choices that confront the country, as opposed to the posturing you’ll be hearing over the next few weeks.
The nearby table lays out the ugly details. The feds rolled up another $1.1 trillion deficit for the year that ended September 30, which was the biggest deficit since World War II, except for each of the previous three years. President Obama can now proudly claim the four largest deficits in modern history. As a share of GDP, the deficit fell to 7% last year, which was still above any single year of the Reagan Presidency, or any other year since Truman worked in the Oval Office.
Tax revenue kept climbing, up to 6.4% for the year overall, and at $2.45 trillion it is now close to the historic high it reached in fiscal 2007 before the recession hit. Mr. Obama won’t want you to know this, but this revenue increase is occurring under the Bush tax rates that he so desperately wants to raise in the name of getting what he says is merely “a little more in taxes.” Individual income tax payments are now up $233 billion over the last two years or 26%”
So what does all of this really mean to you? Local CPA Gary DellaPosta uses the following analogy to put this in perspective:
I believe, we have become immune to these large deficit numbers. 1 TRILLION DOLLARS
What does 1 TRILLION DOLLARS look like? If you put a hundred dollar bill per second on a table how long would it take to accumulate 1 TRILLION DOLLARS?
20 years? 50 years? 100 years? No. 371 YEARS which is longer than the United States of America has been in existence. WOW!!!!