What’s Driving Projected Deficits?
http://www.offthechartsblog.org/whats-driving-projected-deficits-2/
Posted by: CBPP
Posted in: 2001/2003 Tax Cuts, Deficits and Projections, Federal Budget, Federal Tax, Recession and Recovery, Taxes and the Economy
Kathy Ruffing and Jim Horney just updated their periodic analysis on the main contributors to the large budget deficits projected for the rest of this decade under current policies — and they continue to find that these deficits stem overwhelmingly from the economic downturn, the tax cuts first enacted under President Bush, and the wars in Iraq and Afghanistan.
This update reflects the Congressional Budget Office’s (CBO) latest ten-year budget forecast, issued in August, plus other revisions from CBO and actions by Congress since we last conducted this analysis, in May 2011.
Our projections of deficits and debt under current policies are lower than they were in May 2011, largely because of enactment of the caps on discretionary spending in the Budget Control Act, which cut such funding significantly.
Dear American,
Oddly, you have failed to justify or back up any of the points you’re trying to make, so it’s hard to tell if you have a legitimate point, or you’re simply repeating something that was overheard in the echo chamber.
Look closer. Obama’s military spending this year is higher AFTER the end of the Iraq War than any year Bush was ever president (e.g. SIPRI Military Expenditures Database). Obama chose NOT to let the market adjust, as Iceland chose to pushing losses onto bondholders rather than taxpayers, and has driven the deficit up as a result to levels never before seen in the history of humanity. But obama did choose to expand free trade creating less jobs (and less tax revenue) for government while expanding immigration to ensure that foreign born workers received much of the new job creation in the U.S. since he’s been president. Interestingly, a recent Pew study showed that many of these foreign born immigrants (legal and illegal) are taking full advantage of the social welfare system driving up costs. Kathy and Jim can say what they like but Obama chose to greatly worsen the problem he was elected to solve.