U.S. Deficit to Hit $1.1 Trln in 2012

Spending cuts and taxes increases scheduled for January could push economy into recession, CBO says.

The U.S. budget deficit will reach $1.1 trillion this year, slightly less than anticipated, according to a report.

The nonpartisan Congressional Budget Office said today in a biannual analysis that the shortfall will be about $100 billion narrower than it had projected in March. The deficit would be less than last year’s $1.3 trillion, in part because tax revenue has risen by almost 6 percent and spending is down by about 1 percent this year.

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