Who created this deficit, really?

From the Center for Budget Policy and Priorities comes the unexpected news that the Obama Administration policies have had little impact on the federal deficit after all. A new report released shows the deficit would barely top 3 billion dollars if it were not for the policies of the Bush 43 Administration. The TARP program is projected to be close to deficit neutral as the money is paid back, the recovery measures will be paid for in increased tax revenue, and the economic downturn will eventually subside. The enormous tax cuts enacted by the Republican Congress will balloon the budget shortfall and the ongoing wars in Iraq/Afghanistan will further sink any hope of fiscal solvency.

The first implications of these findings is it builds a strong case for deficit hawks to allow the Bush tax cuts to expire. The UI extension in the senate would extend the tax cuts for all but the wealthiest of Americans. Both Harry Reid and Nancy Pelosi have shown an ambivalence about passing a tax extenders bill without an extension of Unemployment Insurance. The second implication of this data is it could somehow translate into an opportunity for the Democrats to regain the upper hand on spending and the deficit. However, the Republicans will likely criticize the "liberal media" for twisting the data as usual.