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The House-passed budget has no chance of winning Senate approval, setting the stage for gridlock until after the November elections. The government last recorded a surplus in 2001. The deficits returned after President George W. Bush won approval for broad tax cuts, pushed a major drug benefit program for seniors and launched wars in Afghanistan and Iraq. 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. 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.
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