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The deficits grew further under Obama as the Great Recession reduced tax revenue as unemployment rose and income fell. The budget gaps have topped $1 trillion in each of his first three years in office. Obama and Democrats pushed for more emergency spending to support the economy, including extending federal unemployment benefits and cutting Social Security taxes. Congress and the White House have struggled to agree on changes to tax levels or spending programs that would reduce the deficit. They will face another big challenge at the end of this year. That's when tax cuts enacted by the Bush administration in 2001 and 2003 are set to expire. A set of automatic spending cuts totaling about $1.2 trillion over 10 years are also scheduled to kick in. Both parties oppose the automatic spending reductions, in part because they include deep cuts in defense. The CBO has estimated that if Congress extends the Bush tax cuts, as it has in the past, and blocks the spending cuts, the deficit will remain near $900 billion or more for the next decade.
[Associated
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