Deficit Hits 1 Trillion for First 9 Months as Tax Revenues Collapse

Great work, 1 trillion and the fiscal year isn't even done yet! Of course trillions in new spending for health care and energy are the solution. After that who cares, just like California the democrats can print money without concern.

July 13 (Bloomberg) -- The U.S. budget deficit topped $1 trillion for the first nine months of the fiscal year and broke a monthly record for June as the recession subtracted from revenue and the government spent to rejuvenate the economy.

The shortfall for the fiscal year that began Oct. 1 totaled $1.1 trillion, the first time that the gap for the period surpassed $1 trillion, Treasury figures showed today in Washington. The excess of spending over revenue for June was $94.3 billion, the first deficit for that month since 1991, according to data compiled by Bloomberg.

Individual and corporate tax receipts are sliding even as the worst recession in five decades shows signs of easing because the jobless rate continues to rise -- reaching a 26-year high in June -- and companies have yet to see a sustained increase in demand. The shortfall is also widening as the government ramps up spending from the $787 billion stimulus program President Barack Obama signed into law in February.

By the way its not just Obama's fiscal lunacy, we are also witnessing a collapse in Tax Revenues:

Tax Receipts

Corporate tax receipts totaled $101.9 billion through June versus $236.5 billion, a decline of 57 percent, the Treasury’s budget statement said today. Individual income tax collections were down 22 percent so far this fiscal year to $685.5 billion compared with $877.8 billion in the year-earlier period.

In other categories, spending by the Social Security Administration rose to $544.7 billion from $491.7 billion for the fiscal year to date; spending by the Department of Health and Human Services, which administers the Medicare and Medicaid health programs, rose to $588.7 billion from $520.4 billion and spending by the Defense Department rose to $472.8 billion from $439.5 billion, Treasury said today.

The Treasury also said that for the fiscal year to date it has spent $147.2 billion on the financial rescue plan called the Troubled Asset Relief Program, and $84.9 billion to purchase mortgage debt from government-sponsored enterprises including Fannie Mae and Freddie Mac, now in government conservatorship.

We can't get away with forever and no amount of speeches or nonsensical arguments from Obama or the democrats will cover these facts on the ground. As for entitlements spending increases, no surprise but the Democrats have pretended it doesn't matter and that the trillion or so for their health care plan will somehow end up being cost neutral. Is it any wonder Giethner is going around trying to re-assure people on the merits of the dollar?