Ducati996

Bush administration projects record 2009 deficit

By ANDREW TAYLOR – 1 hour ago
WASHINGTON (AP) — The government's budget deficit will surge past a half-trillion dollars next year, according to gloomy new estimates, a record flood of red ink that promises to force the winner of the presidential race to dramatically alter his economic agenda.
The deficit will hit $482 billion in the 2009 budget year that will be inherited by Democrat Barack Obama or Republican John McCain, the White House estimated Monday. That figure is sure to rise after adding the tens of billions of dollars in additional Iraq war funding it doesn't include, and the total could be higher yet if the economy fails to recover as the administration predicts.
The result: the biggest deficit ever in terms of dollars, though several were higher in the 1980s and early 1990s as a percentage of the overall economy.
Neither campaign is backing off campaign promises — McCain to cut taxes and Obama to expand health and education programs — in light of the bleaker new figures. But Democrats controlling Congress suggest that will have to change once President Bush's successor takes office.
"Whoever becomes the next president will have a very, very sobering first week in office," said Senate Budget Committee Chairman Kent Conrad, D-N.D.
McCain promises to renew the full roster of Bush tax cuts enacted in 2001 and 2003 and add many more for businesses and upper income people who pay the alternative minimum tax. The Bush tax cuts expire at the end of 2010 and renewing them would soon cost well over $200 billion a year. Eliminating the alternative minimum at the same time would cost almost as much.
Obama would repeal tax cuts on wealthier taxpayers and investors but would leave most of the Bush tax cuts in place while seeking additional cuts for senior citizens, the middle class and the working poor. And he also wants lots of new spending for health care, education and many other federal programs.
"There's a total disconnect between today's report and what we're hearing on the campaign trail," said Robert Bixby of the Concord Coalition budget watchdog group.
The deficit situation confronting the next president is reminiscent of that which Bill Clinton faced in 1993. Under Wall Street pressure, Clinton abandoned promises of tax cuts and pushed a tax-heavy deficit reduction plan through a Democratic Congress.
The administration said the deficit was being driven to an all-time high by the sagging economy and the stimulus payments being made to 130 million households in an effort to keep the country from falling into a deep recession. But the numbers could go even higher if the economy performs worse than the White House predicts.
The budget office predicts the economy will grow at a rate of 1.6 percent this year and will rebound to a 2.2 percent growth rate next year. That's a half point higher than predicted by the widely cited "blue chip" consensus of business economists. The administration also sees inflation averaging 3.8 percent this year, but easing to 2.3 percent next year — better than the 3 percent seen by the blue chip panel.
"The nation's economy has continued to expand and remains fundamentally resilient," said the budget office report.
A $482 billion deficit would easily surpass the record deficit of $413 billion set in 2004. The White House in February had forecast that next year's deficit would be $407 billion.
The deficit numbers for 2008 and 2009 represent about 3 percent of the size of the economy, which is the measure seen as most relevant by economists. By that measure, the 2008 and 2009 deficits would be smaller than the deficits of the 1980s and early 1990s that led Congress and earlier administrations to cobble together politically painful deficit-reduction packages.
Still, the new figures are so eye-popping in dollar terms that they may restrain the appetite of the next president to add to the deficit with expensive spending programs or new tax cuts. In fact, pressure may build to allow some tax cuts enacted in 2001 and 2003 to expire as scheduled, with Congress also feeling pressure to curb spending growth.
The administration actually underestimates the deficit since it leaves out about $80 billion in war costs. In a break from tradition — and in violation of new mandates from Congress — the White House did not include its full estimate of war costs.
On a slightly brighter note, the deficit for the 2008 budget year ending Sept. 30 will actually drop from an earlier projection of $410 billion to $389 billion, the report said.
McCain used the new 2009 estimates to slam both the Bush White House for its "profligate spending" and Democratic rival Obama, who has declined to endorse the goal of McCain — and congressional Democrats — to balance the budget.
"I have an unmatched record in fighting wasteful earmarks and unnecessary spending in the U.S. Senate, and I have the determination and experience to do the same as president," McCain said in a statement.
Obama's campaign used the new numbers to assail McCain for embracing Bush's tax cuts. As for Obama's plans, campaign Policy Director Jason Furman said the candidate would cut wasteful spending, close corporate loopholes and roll back the Bush tax cuts on upper brackets while still promising to make "health care affordable and putting a middle class tax cut in the pocket of 95 percent of workers and their families."
Monday's figures capped a remarkable deterioration in the United States' budgetary health under Bush's time in office.
He inherited a budget seen as producing endless huge surpluses after four straight years in positive territory. That stretch of surpluses represented a period when the country's finances had been bolstered by a 10-year period of uninterrupted economic growth, the longest expansion in U.S. history.
In his first year in office, helped by projections of continuing surpluses, Bush drove through a 10-year, $1.35 trillion package of tax cuts.
However, faulty estimates, a recession in March 2001 and government spending to fight the war on terrorism contributed to pushing the deficit to a record in dollar terms in 2004.
There had been progress since then, with a $161.5 billion deficit for 2007 representing the lowest amount of red ink since an imbalance of $159 billion in 2002.
House Budget Committee Chairman John Spratt, D-S.C., said the new deficit estimate confirms "the dismal legacy of the Bush administration: Under its policies, the largest surpluses in history have been converted into the largest deficits in history."

Thanks Buddy! whatta guy!

gunmaker

Last time I checked, only the Congress could could initiate government spending. The House of Representatives, the Peoples Voice, in particular.
Seems like there's a whole lotta blame being spread around our halls of government, where the ideals of responsibility are theoretically maintained.
The days of this great nation are waning, too many good men have remained too silent for too long!

JD 2520 w/46bh, 200cx loader, meyers 6ft plow
jd 425 w/54"mmm& 54"plow

Deanster

Bush inherited the largest surpluses in history, and now he leaves his successor with the largest debt and deficit in history. What a record.

But really, what do we expect from a guy who was unemployed until his 40's, then proceeded to run a series of companies into the ground, and bought a baseball team with no money down before further capitalizing on his name to get into politics.

___________________________
Cub Cadet Yanmar EX3200, CL300 Loader w/ Rankin toothbar, Land Pride bucket forks, CB75 Backhoe w/ mechanical thumb, Woods LR72 Landscape Rake, Rankin RC20-72 rotary cutter.

Ducati996

Its the stimulus package that really ballooned it up - and from what I hear, it really did nothing to stimulate the economy thus far. No surprise there, and now it has to be paid down....skiping that whole process, tends to be much better - folks have to cut spending first and foremost.

New to the Fold: Kubota L39 w/grapple, pallet forks, BH QA buckets, and more!
JD 2520, 210Cx, 46BH, 60" Box Blade-Mid West, 52" Mid West aerator, 52" first choice Tiller, 5' Fontier blade, 42" pallet forks, Green MFG PHD, Mid West York Rake w/guage wheels, Cub 3204 with Blower & Simms Cab, Mowers (44",48",50"),Ford 2006 F550 turbo diesel 4x4 w/11' mason dump, 16' 10k Doolittle trailer, Southwestern enclosed trailer, Wright Stander RH 52", Better Outdoor Product Quick 32" WB mower, and more !!

Mickey

Have to agree. Far too many think the Pres can spend money on anything he chooses. ALL spending bills have to begin in the House of Representatives. The only blame I can place on the Pres is, he hasn't use the veto enough.

There is hardly a politician in Congress that hasn't seen a dollar they didn't want to spend. IMO if Congress could be forced to limit their spending to those things permitted by the constitution, spending would decline by at least half. Obama is bitching about the level of spending and blaming it on the Pres but is advocating billions in new spending including a new round of a stimulus package.

I get so PO'd hearing mostly the Dem's talk about tax cuts for the rich and the rich not paying their share. One need to look no further than check with the IRS and see who actually picks up the tab. Top 10% of tax payers paying >70% of the taxes and the lower 50% paying abt 3%. I've been near both ends and neither situation is truly fair.

Who Pays Income Taxes? See Who Pays What

1970 Bolens 1257 w/tiller
2005 Cub 3204 48" deck
Yanmar Fx24D
5' Howse rotary mower
RSB 1300 Yanmar tiller

Deanster

I don't know guys. I'm pretty sure the Iraq war is Bush's baby. I'm pretty sure the "Bush tax cuts" are known as the "Bush" tax cuts, and not the "House of Representatives" tax cuts.

Debts and deficits are also affected by more then spending. The Bush dollar is worthless compared to what it was when the Supreme Court gave us this catastrophic presidency.

Lets face it, this administration came in with a radical agenda. They used slash & burn politics to achieve their goals, and they were very successful at it. Congress for 6 years of Bush's administration was a rubber stamp for all of his policies, including budgets. Now we have the results, or at least we are beginning to see them.

___________________________
Cub Cadet Yanmar EX3200, CL300 Loader w/ Rankin toothbar, Land Pride bucket forks, CB75 Backhoe w/ mechanical thumb, Woods LR72 Landscape Rake, Rankin RC20-72 rotary cutter.

Deanster

I think the info on this site is intentionally misleading. First, it only deals with income tax. Other taxes that affect the wealthy which have been reduced or eliminated are not mentioned. Second, they use "Adjusted Gross Income (AGI)", instead of actual income. This hides the any tax benefit that results from income exclusions that benefit the wealthy. I'm not arguing for or against any of these benefits, but this looks like a case study in how to lie using statistics.

___________________________
Cub Cadet Yanmar EX3200, CL300 Loader w/ Rankin toothbar, Land Pride bucket forks, CB75 Backhoe w/ mechanical thumb, Woods LR72 Landscape Rake, Rankin RC20-72 rotary cutter.

Ducati996

The power of the president is more than what you describe - his veto power on spending bills is nothing to sneeze at, or requests for continuation of funding for conflicts. Anybody who presides is accountable for overall budgets and working with the congress to keep things within financial boundaries. Accountability is something this admin hasnt been taken to task, and continuously are allowed to escape from their responsibilities.
Yeah I know it sounds like I'm picking on the "poor" woe is me administration again. Its simply Time for them to man up -

I know both candidates have promised either continuing the existing tax cuts from Bush (McCain), coupled with more stimulus pkgs, or providing new ones (Obama). Either way based on this wonderful news, they have to re-think this and cut back on the giveaways.

New to the Fold: Kubota L39 w/grapple, pallet forks, BH QA buckets, and more!
JD 2520, 210Cx, 46BH, 60" Box Blade-Mid West, 52" Mid West aerator, 52" first choice Tiller, 5' Fontier blade, 42" pallet forks, Green MFG PHD, Mid West York Rake w/guage wheels, Cub 3204 with Blower & Simms Cab, Mowers (44",48",50"),Ford 2006 F550 turbo diesel 4x4 w/11' mason dump, 16' 10k Doolittle trailer, Southwestern enclosed trailer, Wright Stander RH 52", Better Outdoor Product Quick 32" WB mower, and more !!

gunmaker

No, you missed my point. It's time for us, 'we the people' to man-up and address the situation. We are the government, but years of allowing someone else take the responsibility for us, and do things we are personally responsible for as brought us to being a 'nanny' state. We have allowed our government to take on so much responsibility that we are now in a quasi-police state. Don't be surpised if you see major political changes in our governmental structure as we become more comfortable with socialism. Look around for the signs of a society breaking apart; moral decay, political upheaval, cultural disturbances, governmental control, restrictions on individual rights, religious moral equivocation. Most go on blind to the world about them. We have had it so easy, for so long, that we have forgotten history.

JD 2520 w/46bh, 200cx loader, meyers 6ft plow
jd 425 w/54"mmm& 54"plow

PaulChristenson

Actually the budget is PROPOSED BY POTUS...the bills are then generated and passed to pay for it by the House and Senate...

I you look at the recent history...CONTINUING RESOLUTIONS have become the NORM in this country...

On your final paragraph...The rich pay very little % of their income in tax relative to the rest of the citizenry, that is, if you have good accountants that structure your wealth properly...

If I make 10 times the bottom of the heap, it is only right I pay 10 times the tax...

Paul in VT

I used to own an ant farm but had to give it up. I couldn't find tractors small enough to fit it.
-- Steven Wright