Big Deficits Loom as Candidates Pile on Spending and Tax Cuts

Eric Pianin:

Amid the cacophony of presidential campaign promises promising huge tax cuts and large spending increases, the Congressional Budget Office on Thursday renewed it’s warning that the Obama administration’s celebrated era of shrinking deficits has ended and that serious long- term debt problems are once again on the horizon.

By the end of the current fiscal year, the federal budget deficit will rise to $534 billion – about $100 billion more than last year’s shortfall but slightly better than a previous estimate in January. Then, as a new Democratic or Republican president takes control, the deficit will begin a steady upward march unless the new administration and Congress take steps to slow the rise.