Friday, January 28

CBO says Bush Tax Cuts will Explode Deficit, Again!

It's been said before, but yet again in their most recent update to the current Budget CBO has said it again. Here are the before and after projections.



As you can see there is a marked increase from the OMB numbers for FY2011 Budget compared to latest CBO projection. Why the difference? Follow over the flip.


From the CBO's Full Report

Revenues under the President’s proposals would be $1.4 trillion (or 4 percent) below CBO’s baseline projections from 2011 to 2020, largely because of the President’s proposals to index the parameters of the alternative minimum tax (AMT) for inflation starting at their 2009 levels and to extend many of the tax reductions enacted in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA). CBO’s baseline projections reflect current law, under which the parameters of the AMT revert to earlier levels and the reductions under EGTRRA and JGTRRA expire as scheduled at the end of December 2010.

...

CBO has also updated its baseline budget projections, which—unlike the President’s budget—assume that current tax and spending laws and policies remain unchanged. CBO has not modified its economic forecast, so those updated projections just take into account new information obtained about various aspects of the budget since the previous projections were completed in January. The resulting changes are modest, adding $11 billion to the projected deficit in 2010 and reducing projected deficits over the 2011-2020 period by a total of $63 billion.


So they make it pretty plain, the Bush Tax Cuts from 2001 and 2003 are why the deficit will not drop nearly 50% by 2012 as President Obama's administration had previously predicted.

But what about that "Job-Killing Health Care Spending Act"?

Other proposals—including ones associated with significant changes in the nation’s health insurance system—would, on net, increase revenues.


In other words, it would reduce the deficit.

And what would happen if we follow Tea-Publican advice and extended the Bush cuts permenently?

Another set of proposals would permanently extend or modify certain provisions of EGTRRA and JGTRRA that are set to expire at the end of December 2010. Those provisions include reductions in tax rates on dividends, capital gains, and other income;4 relief from the so-called marriage penalty; and an increase in the child tax credit. Other proposals would modify estate, gift, and generation-skipping transfer taxes by extending 2009 law permanently. If enacted, those changes would reduce revenues, relative to the baseline, by $2.2 trillion through 2020, according to estimates provided by JCT.


Not that such simple A-B=C math seems to work for Tea-Publicans like Michele Bachmann who responded to the President saying "every day families sacrifice to live within their means — they deserve a government that does the same."

With this...

"He's absolutely shameless," the Minnesota Republican could be seen saying to her seatmate, Representative Jean Schmidt, an Ohio Republican, according to a video taken in the U.S. House chamber during Obama's State of the Union address two nights ago.

Bachmann, 54, who later gave a televised response to the president on behalf of the Tea Party Express, turned back to face Obama and repeated, "Absolutely shameless!" She spoke as the president was saying the government should balance its budget more like average American families.


Interesting the Bachmann's SOTU-Prom Date was Jeane "Coward's Cut and Run" Schmidt.

And of course Bachmann would think it's "Shameless" since she's been going around Touting this bogus chart which attempts to blame all of our deficit and debt problems on President Obama.



Michele Bachmann may honestly not know this since she apparently doesn't know that John Quincy Adams died almost 20 years before the ratification of the 13th Amendment which finally abolished Slavery, or the fact the he's not a "Founding Father" since he was only 9-years-old in 1776, it's his Father was a Founding Father - not him, but she also doesn't know that the Federal Governments Fiscal Year for 2009 began on October 1st of 2008 - which was one month before Obama was even elected.

Via Factcheck.

Before Obama Took Office, The FY 2009 Deficit Was Projected At $1.2 Trillion. As reported by the Washington Times: "The Congressional Budget Office announced a projected fiscal 2009 deficit of $1.2 trillion even if Congress doesn't enact any new programs. [...] About the only person who was silent on the deficit projection was Mr. Bush, who took office facing a surplus but who saw spending balloon and the country notch the highest deficits on record." [Washington Times, 1/8/09, emphasis added]


The Actual Deficit Chart from the End of Clinton (which shows a surplus) through Obama (which shows the deficit dropping after Bush's explosion) looked like this before the Bush cuts were extended by Decembers Tax Cut Deal.



Tea-Publicans like Bachmann are constantly trying to pin our budget problems on President Obama, but the fact is that the deficit began with Bush and that continuing to implement Bush's Policies will do nothing but continue to worsen our budget problems and deficit - not improve them.

Vyan

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