CHESSNOID

I hope President Obama and his administration realize that the money they are spending comes at a price. The recession will continue to get worse if they continue spend the US economy into a bigger deficit.

NEW YORK (CNNMoney.com)

The government ran up a $21 billion budget shortfall last month, the first April deficit in 26 years, the Treasury Department said Tuesday.

The total deficit for the first seven months of the fiscal year hit $802 billion, compared to a deficit of $153 billion in the same period a year earlier, the government said in the monthly budget report.

“This is historic,” said Dan Clifton, head of policy research at Strategas Research Partners. “Our country has never seen something like this.”

From October – the beginning of the fiscal year – to April, total revenue declined 19%, Clifton said. That’s the largest drop in revenue and almost double the previous record, he said.

Notably, April is usually a good month for Uncle Sam because many taxpayers file their returns and send checks to the Treasury. But this year, tax receipts have fallen sharply because of the recession and the government’s response to it.

The downturn is a triple whammy to government revenue: fewer people are working and providing income tax dollars; corporation tax receipts are on the wane; and tax cuts aimed at juicing the economy reduce paycheck withholdings.

A new approach would be spending within our means. Balance the budget and stop bailing out failed companies. We all have observed many billions of dollars simply went to the CEOs and other high level employee bonuses! Bonuses to people who run companies not even making a profit. Where is the change Obama talked about in reducing wasteful spending? Why is he trying to waste more money than Bush?