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Thread: Long-Term Deficit Worsens

  1. #1
    All League
    Join Date
    Apr 2003
    Washington, D.C.

    Long-Term Deficit Projections Worsen
    Record 2004 Budget Deficit Shows Improvement, Congressional Budget Office Reports

    By Jonathan Weisman
    Washington Post Staff Writer
    Tuesday, September 7, 2004; 11:13 AM

    A recovery in corporate taxation has modestly improved the federal government's short-run deficit, but the long-term deficit has only grown worse during the past six months, thanks largely to an anticipated surge in government spending, the non-partisan Congressional Budget Office said today.

    The deficit for the current fiscal year, which ends Sept. 30, will reach $422 billion, a record in dollar terms but a $56 billion improvement from CBO's forecast in January. The government, however, is now expected to accumulate debt of nearly $2.3 trillion during the next decade, the CBO said. That total is $281 billion higher than the last CBO forecast. The budget office anticipates that the total federal debt held by the public will balloon from $4.3 billion this year to nearly $6.8 billion in 2014.

    That total may prove to be optimistic. It assumes that all of President Bush's tax cuts will expire by 2011, although Bush and congressional Republicans have vowed to extend them permanently. If they succeed, the extensions would tack at least $1.5 trillion to the debt through 2014, the CBO report said.

    The alternative minimum tax, which was created to ensure the wealthy pay income taxes but which will increasingly ensnare the middle class, will present another strain on the deficit. Reforming the tax -- which both political parties say is a priority -- would cost the government another $425 billion over the next 10 years, CBO said.

  2. #2
    Jets Insider VIP Legend
    Charter JI Member

    Join Date
    May 1999
    When comparing it to the % of the GDP it is a pittance as per the deficit that people like FDR built up. Factor in Reagan's deficit's spelled doom for communism and as usual, the libs are short-sighted.

  3. #3 Legend
    Join Date
    Apr 2003
    reagan's deficits against communism was a different story altogether... and it took until the bubble before we recovered...

    yeah Bush will outspend a bunch of mud dwelling ragheads armed with box-cutters

    what will be the next bubble? don't worry about it cause Bush doesn't!

    makes alot of sense to me!


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