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Report: Budget deficit drops to lowest since Obama took office

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Republicans often throw out the false statistic that President Obama is a big spending liberal who continues to role out a deficit north of a trillion dollars during every year he has been in office. While conservative voters might believe Republican rhetoric, a new report shows that it simply isn't true.

According to a new Congressional Budget Office report, the current year's budget deficit is set to fall to $514 billion, down significantly from last year's $680 billion deficit. President Obama took office following the worst financial crisis since the Great Depression with a budget deficit of $1.4 trillion in 2009.

The CBO report notes that increased revenue from tax increases was the main reason for the falling deficit, up by about 9 percent, added with spending cuts, spending increases were held to only 2.6 percent, in certain areas.

Not all the news was bright, however, as the CBO expects to deficit to increase by $100 billion a year if the economy continues its slow recovery adding to a growing national debt. The current national debt will hit $17.6 trillion by the end of the year and unless drastic changes are made, the debt is expected to hit $27.2 trillion dollars by 2024.

CBO Report: "Such large and growing federal debt could have serious negative consequences, including restraining economic growth in the long term, giving policymakers less flexibility to respond to unexpected challenges, and eventually increasing the risk of a fiscal crisis."

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