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US Budget Deficit by demo ,  Sep 6, 2013
Obama to propose changes to Medicare and Social Security in new budget

President Barack Obama's upcoming budget plan, which according to senior administration officials will include proposed changes to Social Security and Medicare plus some new tax increases in an effort for the president to reach a deal with Republicans on deficit reduction, quickly drew criticism from liberal groups on Friday.

The progressive group labeled the president's proposed changes to Social Security as "unconscionable" and Democracy for America called the cuts "profoundly disturbing."

"Millions of MoveOn members did not work night and day to put President Obama into office so that he could propose policies that would hurt some of our most vulnerable people," read a statement from Anna Galland, executive director of the group.

Boehner blasts reported Obama budget as 'wrong direction'

The budget will include an offer Obama made to House Speaker John Boehner in December, officials said. That proposal included $400 billion in savings to Medicare over 10 years.

Two former U.S. budget chiefs who worked for presidents from opposing political parties said on Monday that the government should reduce military spending, scale back Social Security payments and end decade-old income tax cuts to reduce the federal deficit.David Stockman, who was Republican Ronald Reagan's budget director from 1981 to 1985 and a key architect of tax-cutting policies, and Peter Orszag, budget director for Democratic President Barack Obama from January 2009 until July 2010, agreed the United States spends more on defense than is needed.Both also said the country would be well-served if better-off citizens paid more taxes and took smaller benefits from the government in their old age.But the two men, who appeared together at a Thomson Reuters Newsmaker event, were at odds over how quickly and forcefully the government should act to reduce the deficit. Stockman contends the government should dramatically cut spending and raise taxes to pay down the national debt.Orszag says governments are right to use spending to stretch out the economic adjustments to keep large segments of population from losing their jobs, which itself can cause long-lasting problems.The men spoke on the eve of the formal publication of Stockman's new book, "The Great Deformation: The Corruption of Capitalism in America."

US budget deficit jumps in February by $204B

Published March 13, 2013

Associated Press

The U.S. federal budget deficit jumped in February from January, though it is still running well below last year's pace. Higher taxes and an improving economy are expected to hold the annual deficit below $1 trillion for the first time since President Obama took office. 

The Treasury Department said Wednesday that the deficit grew in February by $203.5 billion. That followed a small surplus of $2.9 billion in January. And February's gap was $28 billion smaller than the same month a year ago. 

Through the first five months of the budget year that began on Oct. 1, the deficit is $494 billion. That's nearly $87 billion lower than the budget gap for the same period a year ago. 

The Congressional Budget Office estimates the deficit will total $845 billion for the entire year. That would be down from $1.1 trillion in the 2012 budget year and the lowest since 2008. 

Even with the improvement, the government would be required to borrow 24 cents of every dollar it spends this year.