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Archive for Friday, February 10, 2012

Obama budget predicts $1.3T deficit for 2012

February 10, 2012

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— The White House on Friday confirmed a report that President Barack Obama's new budget predicts a $1.3 trillion deficit for the ongoing fiscal year. The deficit would drop to $901 billion next year under the administration's tax and spending policies.

In his budget submission on Monday the president will also repeat his call to raise the top income tax rate for individuals making more than $200,000 a year and families earning $250,000 from 35 percent to 39.6 percent as part of $1.5 trillion in tax hikes over the coming decade.

The election-year document is sure to get a brushoff from Republicans controlling the House. The White House says that Monday's budget will contain many items from a September submission to a failed congressional deficit "supercommittee," which deadlocked over tax increases and how much to cut popular benefit programs like Medicare.

The Obama budget will also reflect tight "caps" on agency operating budgets forged in last summer's budget and debt limit pact between Obama and House Speaker John Boehner. Those include a $6 billion cut in the budget for core Pentagon operations and cuts to many domestic agencies as well.

But it's commonly assumed that presidential politics will prevent Democrats and Republicans from renewing efforts for a broader budget agreement, though negotiations on Capitol Hill are ongoing in efforts to renew jobless benefits for the long-term unemployed and a two percentage point cut in payroll taxes and prevent a 27 percent cut in Medicare payments to doctors that's the product of an outdated funding formula.

The figures were first reported in The Wall St. Journal, which viewed leaked draft budget documents.

The Journal also says the president will propose a six-year, $476 billion highway and surface transportation bill and $360 billion from curbs to federal health care programs like Medicare and Medicaid.

The White House warned earlier this week that its economic assumptions — predictions of the unemployment rate averaging 8.9 percent this year — now look too pessimistic. They were made in mid-November, before a recent spate of positive news about the economy. If the economy performs better than officially projected, it'll mean a better fiscal performance for the government since greater growth means increased tax revenues.

Comments

Richard Heckler 2 years, 8 months ago

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

  • ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

  • ENTITLEMENT - Another 30% of the national debt had been created by the tax cuts for the wealthy under Presidents Reagan and George H.W. Bush.

• ENTITLEMENT - Fully 81% of the national debt was created by just these three Republican Presidents. http://www.dollarsandsense.org/archives/2010/0111orr.html

  1. ENTITLEMENT - Starting in 2003, George W. Bush destroyed the world economy by encouraging U.S. banks to make loans to those who could not afford them, through schemes such as the "American Dream Downpayment Initiative".

Also through the destruction of oversight, such as lawsuits to prevent state securities laws from being enforced on Bush's watch.

Once Bush's policies led to their inevitable result of economic collapse, the United States found itself in a situation where it had to take on debt in order to restore the economy.

http://www.reaganbushdebt.org/CalculationDetails.aspx

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JayhawkFan1985 2 years, 8 months ago

Debt is not inherently good or bad. Think of it this way. A mortgage helps a family buy a house and match the payments for the purchase to the life of the asset (30 years). Credit card debt when used to buy food or other items that are consumed when not paid off at the end of the month is a different matter altogether. National debt due to building roads and bridges is fine. Taking on debt to pay for wars is bad. The problem with the republicans is they spend as much or more than democrats...they just put it on the national MasterCard at 21% and spend it on wars, tax cuts for the super wealthy. Democrats prefer to pay as they go and spend it on things that benefit the middle class like education and health care.

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sunny 2 years, 8 months ago

Free Birth Control for ALL! That will help! haha

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