Tick tick tick

The US deficit is even worse than it was just moments ago, it seems. AP:

The White House on Monday pushed up its forecast for the U.S. budget deficit for this year by $89 billion, reflecting the recession, a raft of new unemployment claims and corporate bailouts. A fresh estimate of the deficit showed it coming in at $1.84 trillion — representing a massive 12.9 percent of gross domestic product — in the current 2009 fiscal year…

A few points: (a) as you know, taxing the rich at 100% will not come close to paying for Obama’s spending plans; (b) Pakistan is in trouble with the IMF for running a deficit that is one third the size of that of the US as a percent of GDP. Will Obama get his own “stress test” from the bond market anytime soon?

One Response to “Tick tick tick”

  1. gs Says:

    Reuters:

    President Barack Obama proposed on Thursday nearly doubling funds to enforce U.S. tax laws next year, with an aim of more than quadrupling funding for tax compliance to $2.1 billion within five years.

    A cynic might suspect that the quadrupled enforcement budget will not focus exclusively on those who have the resources to contest the IRS. IMO much or most will go toward shaking down Middle America.

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