US runs a 4th straight $1 trillion-plus budget gap

20090110 money printing-01 (Photo credit: Wikipedia)

Washington, Oct. 13, stock tips .-  The United States has now spent $1 trillion more than it's taken in for four straight years. The Treasury Department confirmed Friday what was widely expected: The deficit for the just-ended 2012 budget year - the gap between the government's tax revenue and its spending - totaled $1.1 trillion. Put simply, that's how much the government had to borrow.

It wasn't quite as ugly as last year.

Tax revenue rose 6.4 percent from 2011 to $2.45 trillion. And spending fell 1.7 percent to $3.5 trillion. As a result, the deficit shrank 16 percent, or $207 billion.

A stronger economy meant more people had jobs and income that generated tax revenue. Corporations also contributed more to federal revenue than in 2011.

The government spent less on Medicaid and on defense as U.S. military involvement in Iraq was winding down.

Barack Obama's presidency has coincided with four straight $1 trillion-plus annual budget deficits - the first in history and an issue in an election campaign that ends in 3 1/2 weeks.

When Obama took office in January 2009, the Congressional Budget Office forecast that the deficit that year would total $1.2 trillion. It ended up at a record $1.41 trillion.... Continue to read.

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