TOPICS
TOPICS
CBO projects $400 billion deficit, citing tax rebates
The fiscal 2008 budget deficit will total roughly $400 billion, slightly more than the $389 billion predicted by the Office of Management and Budget last month, according to a Congressional Budget Office estimate released Wednesday.
The numbers prompted fresh criticism from Democrats that President Bush's tax cuts left ballooning deficits in their wake.
House Budget Chairman John Spratt, D-S.C., in a statement issued shortly after CBO issued its projections, said the estimate "gives the Bush administration the dubious distinction of having run up the largest deficits in our nation's history. ... [It] can try to blame these results on factors beyond its control, but it cannot escape comparison with its predecessor."
CBO said the deficit totaled approximately $371 billion for the first 10 months of fiscal 2008, $213 billion more than the shortfall in fiscal 2007.
It noted that its estimate of $400 billion is "close to the amount the agency projected last March after accounting for proposed supplemental appropriations." The estimate comes about two weeks after OMB projected that the fiscal 2008 budget deficit would be $389 billion, followed by $482 billion in fiscal 2009, well above the record $413 billion deficit set in fiscal 2004. Like OMB, CBO cited the tax rebates associated with the $150 billion economic stimulus package enacted in February as the reason for the increase, as well as the slowing economy.
A spokesman for OMB said Thursday the CBO estimates were "in line with our estimates." During a news conference July 28, when the OMB released its estimates, OMB Director James Nussle said the near-term deficits are temporary and manageable if spending is kept in check, the tax burden is not increased and the economy continues to grow. He said that under those circumstances, the nation could see a budget surplus by 2012.
COMMENTS
- Until 2001, we were a noble republic with a balance of powers doctrine. Now, we are but a threadbare fiefdom of an aged addled monarch. Still, those who point fingers will continue regardless of the facts. Yes, Congress rubber stamped this conflict. Yes, Congress gave a token nod rolling back taxes tied to a, then, growing economy. Congress was led by the nose to do something, ANYTHING about a horrendous strike on our soil. But WHAT Congress made these fiscal decisions? The Party Pachyderm! And who was the titular head of these boobs? Shrub and his sovereign minions! I understand a knee-jerk reaction; but to keep throwing good money after bad without regard for who’s going to pay for this conflict?! I see many conservatives forget their history. If this was a “war” in anything but name, we would ALL be sacrificing! We would have savings bond drives, paper and bottle drives; at least we’d be paying the bills instead of leaving them to our children! Remember this Congress was elected to a BARE majority. There is always fat that could be trimmed; but many of these increases are attempts at replacing what was stripped from our national coffers for the benefit of Skeeter’s Feather Merchants and those all too friendly oil companies. We need decent education, health, retirements, necessary infrastructure repairs, and reasonable costs of living. We don’t need to fight “Daddy’s war” for a nation who never asked us to come; asked us to leave; and hasn’t paid a dime for our deadly efforts. On the deficit, may I offer an example? Sisyphus was a king punished by the gods to roll a boulder up a hill, only to watch it roll down again, and to repeat this throughout eternity. Remember Slick Willie, in cooperation with the PP, got that boulder (deficit) settled once. But the PP shoved it down the hill again; and with 7 years momentum it’s going to take some time (AND EXECUTIVE COOPERATION) for us to get it stopped again. Even then, we can not see the entire boulder as this administration hides its true size. “The [Bush] budget makes no allowance for […] costs associated with the wars in Iraq and Afghanistan beyond a $70 billion installment for fiscal 2009.” Let’s wait and see what a full team roster can do before pointing our collective fingers. Tip off Posted August 12, 2008 1:28 PM
- Can I remind the good congressman that it is not the tax cuts that created the deficit but the spending Congress approved that created the shortfall. I personally never went into debt by saving money.... Congress should quit playing political games and get serious about real cuts in spending! charles thompson Posted August 11, 2008 12:20 PM
- I have a unique idea about the deficit. Given the recent news about the surplus of funds that the Iraqi government has amassed from oil revenues--how about if we demand that they reimburse us for our past and future expenditures in their country. Congress should immediately put a "pay as you go" process in place in Iraq and initiate a fee for service with the Iraqi government. Need our troops to continue to ensure your safety--that will be $1M please. For the Iraqi's to amass that much oil revenue--and for us to continue to expend tax dollars in Iraq without any requirement for Iraq to reimburse us is tantamount to fraud. If this President and this congress spends one more dime in Iraq without a committment for them to reimburse us--this needs to be remembered in November! jd Posted August 11, 2008 6:24 AM
