Friday, March 26, 2010

Karl Rove Tweets Approve Tax Increases? CBO: Debt will Rise to 90% of GDP in 10 Years:

The Obama budget will pile up $10 trillion in cumulative budget deficits over the next 10 years and our nation's debt will settle-in at 90% of our Gross Domestic Product (GDP).The administration missed it's estimates, or lied to us, by $1.2 trillion - or just about the same as the under-estimates for the recent health care legislation. I can't think of a pithy intro to this, so I'll just blurt it out: Karl Rove is listed among Conservatives open to tax increases.

Karl Rove

In its 2011 budget, which the White House Office of Management and Budget (OMB) released Feb. 1, the administration projected a 10-year deficit total of $8.53 trillion. After looking it over, CBO said in its final analysis, released Thursday, that the president's budget would generate a combined $9.75 trillion in deficits over the next decade.
The debt your household was responsible in January 2008 was $56,000. In 10 years you and I will owe $170,000, according to the CBO. History shows that CBO estimates are always far too low. These are such dire times. If you think of nothing else in November, first remember that this administration has spit on the Constitution, and your household share of the country's debt will soon be $170,000+.

From Newsmax:
An additional $1.2 trillion in debt dumped on [GDP] to our children makes a huge difference," said Brian Riedl, a budget analyst at the conservative Heritage Foundation. "That represents an additional debt of $10,000 per household above and beyond the federal debt they are already carrying."
The federal public debt, which was $6.3 trillion ($56,000 per household) when Mr. Obama entered office amid an economic crisis, totals $8.2 trillion ($72,000 per household) today, and it's headed toward $20.3 trillion (more than $170,000 per household) in 2020, according to CBO's deficit estimates.
The Weekly Standard's Fred Barnes points to the futility of believing the administrations's deficit reduction claims:
One thread that runs through all these breathtakingly erroneous projections is the lowballing of volume, which is always far greater than expected.  This shouldn’t be a surprise.  When offered a free good or a good that’s highly subsidized and thus cheaper than its real cost, people act in a fairly rational way.  They demand more of the good than they would if they had to pay for it out of pocket.  Not only that, there are invariably more people who are demanding more of that good.
Adding all this up, the unavoidable conclusion is the newly enacted health care bill – Obamacare -- has approximately zero chance of cutting the deficit.   History says it will drive up the deficit, and history doesn’t lie.
The Future of Capitalism, via TaxProf says the chairman of G.W. Bush's Economic Advisers, Glen Hubbard's WSJ op-ed piece gives 3 elements for "a better way forward," the third of which is "Confront and propose significant, broad-based tax increases...." Rove tweets that Hubbard's op-ed is a "great piece. Tell me this isn't true.

©2007-2012copyrightMaggie M. Thornton