Good News, Bad News

What’s worse than high federal deficits?  Reducing the deficit too quickly.

The CBO projects that if the sequester takes effect on March 1, the federal deficit for fiscal 2013 will be $845 billion, the first time the deficit has been below $1 trillion in five years.

But the other side of that coin is their prediction that unemployment will stay above 7.5% all year and that GDP will grow at a pathetic 1.4%.

Recognizing that there isn’t going to be a big budget deal between now and March 1, President Obama is asking for more limited spending cuts and tax reforms to replace the sequester.

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