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The Congressional Budget Office on Tuesday predicted the budget deficit will rise to $1.08 trillion in 2012.
Code:CBO also projected the jobless rate would rise to 8.9 percent by the end of 2012, and to 9.2 percent in 2013.
Code:These are much dimmer forecasts than in CBO’s last report in August, when the office projected a $973 billion deficit. The report reflects weaker corporate tax revenue and the extension for two months of the payroll tax holiday.
thehill.com/blogs/on-the-money/budget/207603-cbo-budget-economy-worse-than-estimatedCode:A rising deficit and unemployment rate would hamper President Obama’s reelection effort, which in recent weeks has seemed to be on stronger footing.