July 15, 2003 8:25 PM Subscribe
Is the budget deficit going to be the other shoe that drops on the Bush administration? In the OMB's mid-session review [pdf], it admits the federal budget deficit would balloon to a record $455 billion this fiscal year after absorbing immediate costs from the war in Iraq, and then climb $20 billion higher in 2004. That's a 50% increase since the administration's last forecast five months ago. At least a few economists think even that number is underestimated. To top it off, the consequences of an increasingly large deficit and accompanying tax cuts are being passed on to the states. How's that for a neat twist on federalism?
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