The growing deficit would be in surplus if Bush tax cuts to the wealthy had not been enacted
Contrary to the administration's theory that those tax cuts for the wealthy fuel the economy, a recent report shows they are the largest contributor to the deficit, and we would be back into surplus if they had not been enacted.
Center on Budget and Policy Priorities
Jan 31,2005
"The new Congressional Budget Office budget projections released today show that the nation faces a fourth consecutive year of substantial budget deficits. Some seek to portray runaway domestic spending or growth in the costs of entitlement programs as the primary cause of the shift in recent years from sizeable surpluses to large deficits. Such a characterization is incorrect. In 2005, the cost of tax cuts enacted over the past four years will be over three times the cost of all domestic program increases enacted over this period.
The new CBO data show that changes in law enacted since January 2001 increased the deficit by $539 billion in 2005. In the absence of such legislation, the nation would have a surplus this year. Tax cuts account for nearly half or 48 percent of this $539 billion in increased costs. Increases in program spending make up the other 52 percent and have been primarily concentrated in defense, homeland security, and international affairs."
Center on Budget and Policy Priorities
Jan 31,2005
"The new Congressional Budget Office budget projections released today show that the nation faces a fourth consecutive year of substantial budget deficits. Some seek to portray runaway domestic spending or growth in the costs of entitlement programs as the primary cause of the shift in recent years from sizeable surpluses to large deficits. Such a characterization is incorrect. In 2005, the cost of tax cuts enacted over the past four years will be over three times the cost of all domestic program increases enacted over this period.
The new CBO data show that changes in law enacted since January 2001 increased the deficit by $539 billion in 2005. In the absence of such legislation, the nation would have a surplus this year. Tax cuts account for nearly half or 48 percent of this $539 billion in increased costs. Increases in program spending make up the other 52 percent and have been primarily concentrated in defense, homeland security, and international affairs."
posted by Anne Damm at 10:13 AM
1 Comments:
Ah yes...it seems the current administration's economic policy is based merely on wishful thinking. Their "faith based" economic theory that tax cuts actually benefit the economy is not supported by fact or success. Coincidentally (?), it does seem to benefit primarily themselves and their friends...the wealthy.
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