Obama budget forecast predicts $8.3 trillion deficit over next decade (Congress, security, campaign)

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The White House released it's Mid-Session Review on Friday, a day when administrations dump news on the media hoping no one will notice. By law, the Mid-Session Review was scheduled for delivery to Congress mid-month.

The Mid-Session Review is a 10-year budget forecast which predicts a trillion-dollar deficit for fiscal year 2012. It also projects $42.6 trillion in spending, and will balloon the federal government’s accumulated debt to $25.4 trillion by 2022.

Last year, the national debt grew to $14.8 trillion, an increase of $5 trillion from 2008.

It shows that Obama's recent campaign ads are false......Obama says to the camera that a tax increase is “asking the wealthy to pay a little more so we can pay down the debt in a balanced way, so that we can afford to invest in education, manufacturing and home-grown American energy.”

But Obama’s new budget plan predicts spending of $46.2 trillion, which is $1.5 trillion above the so-called “baseline” and 57 percent higher than the 2012′s spending rate.


Obviously. the president has no intention of using tax increases to cut the accumulated deficit, and would use them instead to fund the $42.6 trillion spending plan.


The administration’s Mid-Session Review predicts accumulated deficits of $8.3 trillion between 2013 and 2022.


But Jeff Sessions (the budget chief in the Senate) says in his analysis that it adds the current 2012 deficit of $1.2 trillion, plus $1.1 trillion in little-recognized borrowing from government trust-funds, to argue that the administration is actually on a path to increase the cumulative deficit by $10.5 trillion by 2022.


The predicted $25 trillion debt is only part of the federal government’s debts, as it has also made numerous long-term promises — via such programs as Social Security, Medicare and federal pensions — that will cost roughly $90 trillion over the next several decades says Sessions.