U.S. set for fourth year of $1 trillion-plus deficit: CBO

Reuters News

1/31/2012 10:13:46 AM - Reuters News

WASHINGTON (Reuters) - The United States is on track for a fourth straight year with a $1 trillion-plus budget deficit as a sluggish economy holds down corporate tax revenues, congressional forecasters said on Tuesday, but they warned that extension of payroll tax cuts would swell the gap even more.

The non-partisan Congressional Budget Office said the fiscal 2012 deficit would rise to $1.079 trillion from its previous estimate of $973 billion made last August. The U.S. posted $1.3 trillion deficits in each of the past two years after a record $1.4 trillion deficit in fiscal 2009, President Barack Obama's first year in office.

(Reporting By David Lawder; Editing by Neil Stempleman)