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December 2, 2008 3:36:58 AM CST

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Tax Hikes Loom as Deficit Nears $1T

Posted Oct 16, 08 10:03 AM CDT in US,  Politics,  Business 

(Newser) – The bailout and other government spending are adding on to an already-enormous US budget deficit, and the next president might well have to raise taxes, no matter who it is, the Christian Science Monitor reports. This fiscal year will put the US down nearly $1 trillion, one nonpartisan group estimates, raising the possibility that foreign lenders will move away from purchasing US debt.

Government debt doesn’t seem “like such a good bet anymore” to outside investors, says a fiscal watchdog. This year’s deficit is about 7.5% of gross domestic product—the highest percentage since World War II—and adds $8,620 of federal debt per household. “We may well have passed the point where the federal government's total financial hole exceeds the net worth of all Americans,” adds an analyst.

Source Christian Science Monitor

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Financial Crisis • budget deficit • Wall Street bailout • national debt • tax hikes • Treasury bills


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