AlliedNews.com - Grove City, Pennsylvania

Opinion

February 24, 2012

CBO projecting deficit of $1.1 trillion for fiscal '12

The Congressional Budget Office recently released its 10-year budget projection and economic outlook for the U.S. and guess what: We still need to work on the whole spending versus revenue thing.

The CBO is projecting a deficit of $1.1 trillion for fiscal year 2012 (which ends Sept. 30), down 2 percentage points as a percentage of GDP from last year's $1.3 trillion deficit. While that sounds like some good news, CBO Director Douglas Elmendorf notes that the deficit is still the highest of any deficit between 1947 and 2008.

It's important to know that while the deficit projections do make some assumptions about the economy and job growth, they are mostly projections based on current policies in place, especially the ones that affect taxing and spending.

The first important point to consider if we are at all in agreement on lowering the deficit: Current policies, including sunsetting of Bush and Obama tax cuts and mandatory spending cuts agreed to last year, would lower the deficit to roughly an annual level of about $200 billion, or just 1.5 percent of GDP from 2013 to 2022. The policies in place now would lower the deficit by about half, to $585 billion in 2013. . . .

In other words, if Congress does nothing (something it's getting good at), the deficit would be cut in half within a year or so.

Overall federal spending is projected to declined as a share of GDP in the next few years but will rise after that. . . .

The Free Press, Mankato, Minn.

Published Feb. 18, 2012, in Allied News, Grove City. Pick up a copy at 201 A Erie St.

1
Text Only
Opinion
  • Forced-pooling hearing should include those affected

    It's hard, after all we’ve seen, to imagine that the long-simmering debate about fracking for natural gas is as simple as either side says it is.

    April 18, 2014

  • Protecting reporters and the right to know

    If it had been solely up to government officials at the time, how much do you think Americans would have learned about the Watergate break-in and the White House cover-up that followed? Maybe nothing.

    March 12, 2014

  • Dispute over meetings warrants public attention

    Something funny is going on in Pulaski Township.

    February 7, 2014

  • Mister Rogers vs. the Unity Tree

    I was walking by Stanwix Street and Penn Avenue last week when struck by our city’s “Unity Tree.” It’s a curious thing about the Unity Tree: it only comes out at Christmas time — yes, Christmas.

    January 17, 2014

  • Drilling anywhere in PA has implications for all

    If you drink water, read this.

    January 10, 2014

  • Sudden snow sometimes creates idiots on roads

    Spring in December seemed to have sprung last Saturday when the sun was shining and the mercury rose above 40 degrees. The prediction of freezing rain for Sunday appeared way off the mark.

    January 3, 2014

  • Online gambling study ordered for Pennsylvania

    Coming on the heels of a report noting that total revenue from Pennsylvania slot machines for November was down 1.3 percent from last November, the state Senate recently passed a resolution, calling for a study of gambling in Pennsylvania, including the possibility of legalizing online gambling.

    January 3, 2014

  • Obamacare stumbles over the basics of signups

    Every new program is bound to have a few glitches. But what’s happening right now with the nation’s new health insurance program and online signup efforts is disturbing. And it creates uncertainty regarding the entire concept of health care reform.

    November 26, 2013

  • Anti-cyberbullying efforts may be having effect

    Parents everywhere must be rejoicing, because a new poll suggests that cyberbullying among students seems to be decreasing.

    November 26, 2013

  • A veteran, 90, recalls Patton, Ike, freedom

    I recently took my two teenage sons to a talk by Frank Kravetz, a 90-year-old World War II veteran who survived Hitler’s Nuremberg prisons. Frank published his story in a memoir, “Eleven Two: One WWII Airman’s Story of Capture, Survival and Freedom.”

    November 26, 2013

Featured Ads
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide