Republicans favor balanced budgets
Last updated 2004-01-09
yet, due to the Republican budgets under GW Bush, a study prepared by the Bush Treasury provides a scary preview: the U.S. faces chronic budget deficits of at least $44,200 billion — the chasm between revenue and outlays promised to baby-boom retirees. To quote The Financial Times, "The study's analysis of future deficits ... It is roughly equivalent to 10 times the publicly held national debt, four times U.S. economic output or more than 94 percent of all U.S. household assets." It would take the equivalent of "an immediate and permanent 66 percent across the board income tax increase" (1.66 times current taxes) to honor future obligations to the baby boomers. Of course, rescinding all the Bush tax cuts, by the reckoning of the Center for Budget and Priorities, would cover the shortfall in Social Security and Medicare combined. Much of the gap in Social Security could also be closed by obliging the heirs of Warren Buffet, Bill Gates, et al. to pay an inheritance tax on their billions. Bush wants them to pay nothing, and they will pay nothing in 2010 and beyond unless Congress can find the nerve to sunset the elimination of the "death tax," included in the 2001 tax cut.
See The Atlantic Online
$300 Billion Deficits, As Far as the Eye Can See
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