The deficit for this year would surge to a record-breaking $1.56 trillion, topping last year's then unprecedented $1.41 trillion gap. The deficit would remain above $1 trillion in 2011 although the president proposed to institute a three-year budget freeze on a variety of programs outside of the military and homeland security as well as increasing taxes on energy producers and families making more than $250,000....So much for reducing the budget. I suspect that Mr. Obama's promise to do so next year...will be just as ephemeral.
4 years ago
2 comments:
I love economic theory but the practical parts sometimes escape me. Could you explain how failing to pass the Cap'n Tax will make things worse? That monster was going to kill us.
Heritage (I think it was they) had a complete breakdown by congressional district of how much each would be impoverished by that bill.
I'm not being rhetorical, I'd really like to know why passing that horror would be a good idea? It certainly would grow govt at an enormous rate. And it would make the underground economy larger as people sought to get around the tax burden.
Please let me know why you think it should pass?
BTW, great graphic. And I'm going to put a live link to your site in our comments. The one you left is not likely to get much attention...our lazy readers (like I am) are more likely to hit a link than they are to scrape out a URL.
Ok, to clarify. Mr. Obama is including in his budget those taxes that are included in the "Cap & Trade" bill in order to keep his deficit as low as it is...if, as is expected, the "Cap & Trade" Bill dies in the Senate (as is expected), the deficit for BY2011 will be much higher, on the order of as much as 1/3 more. In other words, the deficit can cap $2 trillion dollars.
The CBO is reporting that they don't expect unemployment to drop below 10% until late 2011, or possibly the 2nd QTR of 2012...because this budget and 2012's which is expected to have a deficit on the order $1.5 trillion (IF Cap & Trade passes) or higher...
This is going to do very long term damage to the economy...that will take at least a decade to return to 2008 numbers, and possibly as long as 20 years to reach that point.
A little better?
I'm not saying cap and trade will be good for the country, it will be economic suicide and will turn this recession into a gaping hole depression that will take 2-3 decades to recover from.
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