U.S. budget deficit likely to hit $250 billion

January 23, 2008
U.S. budget deficit likely to hit $250 billion

WASHINGTON - The overall U.S. budget deficit could hit $350 billion this year, largely due to a weakening economy and the costs of wars in Iraq and Afghanistan, according to the Congressional Budget Office and a top Senate official.

The non-partisan CBO says that once the cost of wars in Iraq and Afghanistan is added to its "baseline" deficit estimate of $219 billion, the deficit would be about $250 billion.

Bush Ignores Record Debt: Pushes $150 Billion Package

January 19, 2008
Bush Ignores Record Debt: Pushes $150 Billion Package

WASHINGTON - President Bush said Saturday "the kind of spending projects that would have little immediate impact on our economy" should not be part of any stimulus package, setting the stage for a possible clash with Democrats.

Bush and the Democratic-controlled Congress are emphasizing their desire to work together as they rush negotiations on a short-term measure to prevent the economy from falling into recession. But while there is broad agreement that one-time tax rebates for consumers will be part of the package, there are different priorities at work for the rest of the measure.