Izzat So?
Deficit Study Disputes Role of Economy
When President Bush and his advisers talk about the widening federal budget deficit, they usually place part of the blame on economic shocks ranging from the recession of 2001 to the terrorist attacks that year.
But a report released on Monday by the nonpartisan Congressional Budget Office estimated that economic weakness would account for only 6 percent of a budget shortfall that could reach a record $500 billion this year.Next year, the agency predicted, faster economic growth will actually increase tax revenues even as the deficit remains at a relatively high level of $374 billion.
The new numbers confirm what many analysts have predicted for some time: that budget deficits in the decade ahead will stem less from the lingering effects of the downturn and much more from rising government spending and progressively deeper tax cuts.
Anybody else as shocked and confused by this turn of events as I am?
on
| § 1
§ One Comment
[ You're too late, comments are closed ]
Well, there are two obvious
Well, there are two obvious solutions. Cut spending or raise taxes. I'd rather cut spending, and that has been my chief beef with our dear leader. But that is no reason to raise taxes, or to rescind the cuts we've already received.
To mangle some metaphors, if somthing is spending money faster than you can shake a stick at plus the stick, don't throw gasoline on the fire.