Categorized | Headlines

Forbes | Obama’s Legacy: $20 Trillion in Deficits for 2016 Victor





We may agree or disagree with the CBO’s projections, but they are the most authoritative we have. President Obama has been vocal with respect to  the fiscal policies he wants, and each item on his wish list can be scored using the CBO’s August study. Therefore, we can approximate the five-year deficits that would result if President Obama gets what he wants. This is not rocket science. Anyone can do this using the CBO’s excel files.

The CBO’s bottom line: If we go over the fiscal cliff, the second Obama administration will accumulate $1.5 trillion in deficits for 2013-2017 ($300 billion per year), for  a “modest” deficit of less than two percent of GDP. If Obama gets his full wish list and avoids the fiscal cliff, the CBO’s alternate fiscal policy projections yield a cumulated 2013-2017 budget deficit of $4.5 trillion. In this case, the second Obama administration will run annual deficits of almost a trillion dollars a year. Only this time round, Obama does not have the convenient excuse of  a deep economic crisis inherited from the previous administration. As he assured voters in the election campaign – the recovery is underway. Do not worry.

Remember that the CBO’s $1.5 trillion baseline-budget assumes that everyone’s taxes are raised and automatic spending cuts go into effect, more middle class families fall into the Alternative Minimum Tax trap, and eligibility periods for unemployment revert to previous rates. Payments for food assistance and other income security benefits are cut, and Congress really does, after years of threats, cut payments to Medicare physicians. These events are unlikely to happen, unless the fiscal cliff talks fail entirely or, if they do, no remedial action is taken in the early 2013.

More.



Comment Policy: The Editors reserve the right to delete any comments which in their sole discretion are deemed false or misleading, profane, pornographic, defamatory, harassment, name calling, libelous, threatening, or otherwise inappropriate. Additionally, the Editors reserve the right to ban any registered poster who, in their sole discretion, violates the terms of use. Do not post any information about yourself reasonably construed as private or confidential. Conservatives4Palin and its contributors are not liable if users allow others to contact them offsite.

  • Christopher H Fromme

    Unless the Republican House gets a spine that they did not have starting in March 2011 we are doomed. They need to have a Newt approach shut down DC fund the military SS but all the leaches in DC get no money   No CR’s    It is time to play hardball otherwise we will be 22 T in debt by 2017

Open Thread

Governor Palin’s Tweets