Failed in his pledge to cut the deficit "we inherited" by half by the end of his first term. The deficit when he took office was $1.2 trillion, and the $800 billion stimulus bill Obama signed soon afterward increased the shortfall to more than $1.4 trillion. The deficit for the recently completed 2012 budget year registered at $1.2 trillion, marking the fourth consecutive year of trillion-dollar-plus red ink. Now promises to cut projected deficits by $4 trillion over 10 years, a goal that will require Congress to raise the capital gains tax, boost taxes on households earning more than $250,000 a year and impose a minimum 30 percent tax on incomes above $1 million. The target also assumes a reduction in the amount of interest the government must pay on its debt and incorporates $1 trillion in cuts already signed into law. Nation's debt surpassed $16 trillion this year. Federal spending is estimated at 23.5 percent of gross domestic product this year, up from about 20 percent in the previous administration, and is forecast to decline to 21.8 percent by 2016.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.