Bush wrecks the economy; Obama hits McCain

[ProSense]

Federal Deficit Estimated at Near-Record $407B

By Lori Montgomery
Washington Post Staff Writer
Tuesday, September 9, 2008; 3:21 PM

Weak revenue growth and accelerated spending -- including an economic stimulus package that returned billions to taxpayers -- will drive the federal deficit to $407 billion in the fiscal year that ends this month, more than double last year's $161 billion, congressional budget analysts reported today.

With the economy expected to remain sluggish for at least the next several months, the next president will take office facing a projected deficit of $438 billion, budget analysts predict -- the largest in dollar terms in American history, exceeding the previous record of $413 billion in 2004. And that number could easily climb above $500 billion if Congress acts, as expected, in the coming months to restrain the growth of the alternative minimum tax, budget analysts said.

In January, congressional budget analysts had estimated the deficit would be only $219 billion by year's end. This summer, however, the White House estimated that that number was likely to spike to $389 billion because of new spending.

Democrats seized on the deficit figure to lambaste the Bush administration and Republicans in general.

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The Obama campaign charged on its Web site that Sen. John McCain (Ariz.), the Republican presidential candidate, "wants us to think he represents change, but he wants to spend $3.4 trillion more than President Bush on tax cuts, most of which will go to the wealthiest corporations and big oil companies and leave more than 100 million middle-class families without a dime of tax relief." It said Obama "will bring real change by cutting taxes for middle-class families and small businesses, paying for all his proposals to reduce the deficit, and will put America on a path towards fiscal responsibility and a stronger economy."

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Plus a huge bailout