CBO: Federal budget surplus predicted if Bush tax cuts are repealed.

[Lefty48197]

The Congressional Budget Office has projected that if Bush's tax cuts for his rich friends expire in 2010 as per current law, then the federal budget will return to surplus only two years later, in 2012.

"...if those tax cuts are allowed to expire after 2010... ...the budget would begin showing a surplus in 2012, the CBO's budget projections showed.

"Bush wants Congress to make the tax cuts permanent before he leaves office in 2009."

"In its annual budget and economic report, the agency estimated that this year's deficit will be $337 billion, up $19 billion from 2005. It said the deficit will be about $360 billion if extra anticipated costs for Iraq, Afghanistan and the hurricane-ravaged Gulf Coast are added."

"The long-term budget forecast is gloomier, particularly if Bush and Congress agree to extend the tax cuts. In 2016, the deficit would be nearly $400 billion..."



http://www.usatoday.com/printedition/news/20060127/a_deficit27.art.htm

I don't know why USAToday doesn't include the graphics from their print editions with their on-line editions. Here is the graphic that was included with this story:

[DemInDistress]

1. He is a raving lunatic parroting what the crime family wants

and who behind this lunatic is pulling the strings...ROVE,CHENEY,POPPY,BAKER,DUMSEY AND FEEL FREE TO ADD MORE NAMES

[acmejack]

2. Walton, Scaife, Koch

[napi21]

3. That statement is VERY misleading!

They are talking about the "budget deficit", the BIG problem is "THE FEDERAL DEBT!"

Many people don't realize that when they read articles like that, and they assume it means everything is WONDERFUL!

[Lefty48197]

5. I'm not sure which statement you're saying is misleading

Debts come from deficits so I think they're linked. I hope you don't mean that anything I'VE written is misleading.

[napi21]

7. NO Not you! The article. I KNOW the debt comes from budget

deficits, but you'd be surprised how many people don't think like that!

I guarantee you, some will read that NP article and say, "see, we should have our tax cuts, because if we don't get them, the feds will have a damn surplus again!"

That's the BS they pushed back when BC was still Pres. All the big mouths on the rw radio were saying they were willing to pay their taxes, but the Fed Gov't shouldn't be allowed to run a surplus!"

I can't tell you haw many people I had to explain this to, in very basic terms.

[ticktockman]

9. The debt and the deficit

I guarantee you, some will read that NP article and say, "see, we should have our tax cuts, because if we don't get them, the feds will have a damn surplus again!"

That's the BS they pushed back when BC was still Pres. All the big mouths on the rw radio were saying they were willing to pay their taxes, but the Fed Gov't shouldn't be allowed to run a surplus!"

You're correct. Everything in the USA Today article is technically true and it does correctly point out the relative cost of extending the tax cuts. However, it also understates the problem. As you say, it's important to distinguish between the deficit and the debt. If we do run a surplus of $67 billion in 2016, it will simply repay a tiny amount of the over $2.4 trillion ($2,400 billion) that the debt has increased under Bush. In fact, it's actually worse than that. The deficit that is commonly reported does not include the monies that are being borrowed from Social Security and the other trust funds. For example, the deficit reported for 2004 was $412 billion. However, the gross federal debt increased $595 billion in that year, from $6,760 billion to $7,355 billion. Graphs and numbers for the debt and deficit can be found at http://home.att.net/~rdavis2/debt06.html and http://home.att.net/~rdavis2/def06.html .

Concerning the CBO projections, they look similar to the projections that they made last year. The deficit was projected to move toward zero if the tax cuts expired but continue to slowly increase if the tax cuts were extended. However, the following graph shows that the gross federal debt was projected to continue its rapid ascent, even as a percentage of GDP, if the tax cuts were extended.



The actual numbers and sources can be seen at http://home.att.net/~rdavis2/cbobud05.html .

[Lefty48197]

10. Comprende. Thanks for the explaination.

You're right. Many Americans don't know the difference between the deficits and the debt. That leaves a lot of room for the right wingers to obfuscate the issue.

[Angry Girl]

4. CBO confirms Bush/GOP destroying U.S. economy

New forecasts issued by the Congressional Budget Office confirm that if the tax cuts and Alternative Minimum Tax relief are extended, the nation faces large and growing deficits over the next ten years, with total deficits of between $3.5 and $4 trillion over that period.

http://www.cbpp.org/1-27-06bud.htm

Thank you, Bush, for destroying our economy and freedom. Thank you, Dems who sat back like cowards and let this happen. Thank you, freepers, who are still as stupid and ignorant as ever. Thank you, corporate press, for being such whores - I hope you choke on your blood-streaked paychecks.

[DemInDistress]

6. great post.......powerful post.......

you said it all......

:toast: :toast: :thumbsup: :thumbsup: :hi: :dem: :yourock:

[Daphne08]

8. They want a deficit...an excuse to cut social programs.

I think it's obvious.