White House to project $2 trillion higher deficit over next decade

Obama administration expects the federal deficit to be $2 trillion bigger than the previous estimate. This predicition has been made due to a slower economic recovery. While a white house official told this on the account of anonymity, he also contended that this higher deficit could also lead to troubling waters ahead for the Obama administration who are already being panned for their Stimulus Plan. This also means that Obama's goal to cutting down America's deficit to to $512 billion in 2013.
In its earlier projections, the White House said the deficit would be manageable if it slides to 3 percent of gross domestic product. Earlier projections barely met that standard -- even after relying on optimistic assumptions like the wars in Iraq and Afghanistan costing $50 billion a year instead of the $130 billion budgeted for 2010.
Now, the deficits could easily exceed 4 percent of GDP, even after cost-cutting efforts or new revenues claimed in Obama's budget.
Now, to keep true to their promise, Obama and his asministration may have to bend or even break the other promise of not raising any taxes on individuals who make less than $200,000 and we may see something similar to former President Bill Clinton's tax-heavy 1993 deficit reduction plan. (Source: Yahoo News)