Deficit tops $1 trillion for 4th straight year

By Jeanne Sahadi, CNNMoney

NEW YORK (CNNMoney) – The federal government logged a $1.1 trillion deficit in fiscal year 2012 — marking the fourth straight year of trillion-dollar shortfalls.

As a share of the economy, the deficit fell to roughly 7%, according to Congressional Budget Office estimates released Friday. That’s down from 8.7% in 2011, and well below the bruising 10.1% recorded in 2009 during the depth of the economic downturn.

Deficits as a share of GDP in the past four years have been the highest since 1947.

The decline is thanks largely to an uptick in revenue. Compared to last year, the federal government collected 6% more in fiscal 2012, which ended Sept. 30.

A big reason was the jump in corporate tax receipts, which rose a whopping 34%. CBO attributes the increase in large part to a change in tax rules, particularly those that govern how fast companies can…

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