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U.S. deficit to shrink slightly, growth to slow - CBO

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(Globalpost/GlobalPost)

WASHINGTON, Feb 5 (Reuters) - The fiscal 2013 U.S. budget deficit will dip to $845 billion after four straight years of $1 trillion-plus deficits, the Congressional Budget Office said on Tuesday, largely because of higher taxes now being paid by wealthy Americans.

The CBO analysis, which will feed into Congress' bitter debate over deficit-reduction plans, assumes that $85 billion in automatic spending cuts will launch as scheduled on March 1.

It said the fiscal tightening from higher taxes and this lower spending will slow economic growth this year and cause unemployment to rise.

http://www.globalpost.com/dispatch/news/thomson-reuters/130205/blank-headline-received-11