CBO: Obama budget underestimates deficits by $2.3 trillion over upcoming decade

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Source: Associated Press

WASHINGTON — A new assessment of President Barack Obama’s budget released Friday says the White House underestimates future budget deficits by more than $2 trillion over the upcoming decade.

The estimate from the nonpartisan Congressional Budget Office says that if Obama’s February budget submission is enacted into law it would produce deficits totaling $9.5 trillion over 10 years — an average of almost $1 trillion a year.

Obama’s budget saw deficits totaling $7.2 trillion over the same period.

The difference is chiefly because CBO has a less optimistic estimate of how much the government will collect in tax revenues, partly because the administration has rosier economic projections.

Read more: http://www.washingtonpost.com/business/cbo_obama_budget_underestimates_deficits_by_23_trillion_over_upcoming_decade/2011/03/18/ABBctsq_story.html