“If the current laws that govern federal taxes and spending do not change, the budget deficit will shrink this year to $642 billion, the Congressional Budget Office (CBO) estimates, the smallest shortfall since 2008. Relative to the size of the economy, the deficit this year—at 4.0 percent of gross domestic product (GDP)—will be less than half as large as the shortfall in 2009, which was 10.1 percent of GDP. Because revenues, under current law, are projected to rise more rapidly than spending in the next two years, deficits in CBO’s baseline projections continue to shrink, falling to 2.1 percent of GDP by 2015.”
The Congressional Budget Office announces revised deficit productions, cutting 2013 deficit predictions by more than $200 billion and deficits over the next decade by more than $600 billion. The media hardly notices.
When I was asked during the campaign about what I would do if it came down to a choice between defense and deficits I always said national security had to come first, and the people applauded every time.
It is not class warfare to suggest that the richest 1 percent of people in society pay one-third of their income to the federal government, as they did under Ronald Reagan. Keep in mind that dividends were taxable as ordinary income every year of his administration, and in the Tax Reform Act of 1986 he supported taxing capital gains as ordinary income as well… The issue is not whether the rich should pay more, but how best to accomplish it.
by Dave Johnson, TruthOut Op-Ed
Problem: Your right-wing brother-in-law is plugged into the FOX-Limbaugh lie machine, and keeps sending you emails about “Obama spending” and “Obama deficits” and how the “Stimulus” just made things worse.
Solution: Here are three “reality-based” charts to send to him. These charts show what actually happened.
The Republican House that failed to raise the debt ceiling would somehow escape all blame. Then Democrats would have no choice but to pass a balanced-budget amendment and reform entitlements, and the tea-party Hobbits could return to Middle Earth having defeated Mordor.
John McCain • Ripping the Republican Party on the Senate floor. He later derided House Republicans’ approach to the debt-ceiling discussions as “the kind of crack political thinking that turned Sharron Angle and Christine O’Donnell into GOP Senate nominees.” source (via • follow)
I like this John McCain much better than whoever took over his body in 2008.
On Wednesday, the Congressional Budget Office released its latest long-term budget outlook. As always, the scorekeepers offered up two scenarios: In the first, Congress does nothing, follows the laws currently on the books — which means the tax cuts expire, the Medicare cuts from the 1997 Balanced Budget Act go into effect, and the Affordable Care Act is fully implemented — and the debt stabilizes. In the second, Congress extends most of the tax cuts, ignores the Medicare cuts and repeals various cost controls in the Affordable Care Act. Debt, of course, explodes.
We have a congress problem, not a deficit problem. The deficit only explodes if the next few congresses vote to detonate it. Congress doesn’t have to extend the Bush tax cuts without offering offsets, or put off the Medicare cuts without paying for them in other ways, or do the easy parts of the health-care law without doing the hard parts. The answer to this, however, is not a high-stakes negotiation over the debt ceiling, where one false move could bring down the American economy, but a much-strengthened version of PayGo, where deficit-increasing deviations from current policy need to be offset with spending cuts or tax increases elsewhere.