Bush-Era Tax Cuts Projected As Largest Contributor To Public Debt

If the Bush-era tax cuts are renewed next year, that policy will by 2019 be the single largest contributor to the nation's public debt -- "the sum of annual budget deficits, minus annual surpluses" -- according to new analysis from the non-partisan Center for Budget and Policy Priorities. These tax breaks, combined with the cost of fighting wars in Iraq and Afghanistan, will account for nearly half the public debt in 2019, measured as a percentage of economic output, the CBPP's analysis shows. Even the cost of the economic downturn, combined with the cost of the legislation passed to stem the damage, won't be as burdensome as the weight of the Bush-era tax cuts, the chart below suggests. See if you can find the debt associated with the Trouble Asset Relief Program and the rescue of Fannie and Freddie

Via the non-partisan Center for Budget and Policy Priorities:

[S]imply letting the Bush tax cuts expire on schedule (or paying for any portions that policymakers decide to extend) would stabilize the debt-to-GDP ratio for the next decade. While we'd have to do much more to keep the debt stable over the longer run, that would be a huge accomplishment.

www.huffingtonpost.com...

The huffington post is a liberal rag. CUT SPENDING! That can reduce the deficit. If you charge too much on your credit cards, what do you do? Ask for a raise? Maybe, but you also cut spending.

Originally posted by DarthMuerte
The huffington post is a liberal rag. CUT SPENDING! That can reduce the deficit. If you charge too much on your credit cards, what do you do? Ask for a raise? Maybe, but you also cut spending.

Agreed on both counts.

The biggest problem with the Bush tax cuts were the accompanying Bush-era spending increases, which the current administration hasn't bothered cutting back, either. We're currently spending almost twice as much every year as we were when Bush won the 2000 election, a fact which would seem to make the solution to our deficit problem obvious, but in case its not, I'll repeat what you said: CUT SPENDING!

So just as Bush's tax cuts are part of the issue, the other issue is multiple wars that have to be paid for. Your title is a little misleading as you dont mention the wars cost in there, or was that just to bash Bush. Easy answer is stop spending so much money, that way you dont have to borrow, it's not rocket science

Originally posted by DarthMuerte
The huffington post is a liberal rag. CUT SPENDING! That can reduce the deficit. If you charge too much on your credit cards, what do you do? Ask for a raise? Maybe, but you also cut spending.

Our out of control military spending needs to be cut. As well as all corporate welfare needs to stop. Stopping all foreign aid should be done also it makes no sense to take money from poor people in this country and give it to the wealthy in another.

Funny you never hear huffington is a liberal rag when it supports the rights ideals.

Originally posted by FFS4000
So just as Bush's tax cuts are part of the issue, the other issue is multiple wars that have to be paid for. Your title is a little misleading as you dont mention the wars cost in there, or was that just to bash Bush. Easy answer is stop spending so much money, that way you dont have to borrow, it's not rocket science

Did you even look at the pic? It shows the wars as well.

reply to post by FFS4000


I just copied the title from the article.

reply to post by buster2010


AND the huffpo didn't generate the date, a non-partisan organisation did.

Originally posted by longlostbrother
reply to post by buster2010

 

AND the huffpo didn't generate the date, a non-partisan organisation did.

Thats right they just report it. If people don't like it they don't have to read it.

Just two policies dating from the Bush Administration — tax cuts and the wars in Iraq and Afghanistan — accounted for over $500 billion of the deficit in 2009 and will account for $7 trillion in deficits in 2009 through 2019, including the associated debt-service costs. [7] By 2019, we estimate that these two policies will account for almost half — nearly $10 trillion — of the $20 trillion in debt that will be owed under current policies

www.cbpp.org...

Compare that to this:

President Obama's landmark healthcare overhaul is projected to cost $1.76 trillion over a decade,

news.yahoo.com...

So that's 2 trillion for Obamacare between now and 2022, vs 10 trillion for Bush era wars and tax cuts.

In fact!

the tax cuts account for $1.7 trillion in extra deficits in 2001 through 2008,

So, the Bush Tax cuts cost, between 2001 and 2008, the same amount as Obamacare will in in it's first decade.

Originally posted by DarthMuerte
The huffington post is a liberal rag. CUT SPENDING! That can reduce the deficit. If you charge too much on your credit cards, what do you do? Ask for a raise? Maybe, but you also cut spending.

Did you care to even look at the numbers? True, if you cut spending (like the defense component in the diagram presented to you), you'll do better, but try to appreciate the scale of the tax cut difference, before you call this "liberal rag" (and switch off your brain).

Does Obama's past and projected spending figure into this outside of Bush being at fault?
Just wondering.

Letting people keep their hard earned money is responsible for the government overspending it's budget.

Really? Try again.

reply to post by Aliensun


go read the numbers yourself.

reply to post by jjkenobi


You not understanding something isn't the same as it being wrong.

Even if the tax cuts lost us 1.7 trillion in eight years that isn't nearly the rate that the current administration has been accumulating debt. He's racked up nearly 5 trillion in four years.

Also, it is completely ass backwards and ridiculous to say that income (or a lack thereof) is a primary contributor to debt, as opposed to expenditures.. That just ignores the real problem of our runaway spending.

reply to post by Mkoll


You should go check the numbers. The Bush tax cuts and the wars cost not 2 trillion but 12 trillion by 2019.

12 TRILLION

Originally posted by longlostbrother
reply to post by Mkoll

 

You should go check the numbers. The Bush tax cuts and the wars cost not 2 trillion but 12 trillion by 2019.

12 TRILLION

By 2019. So, if we cut the spending, we cut the debt. Is that too hard for you to understand?

Any justification to end the Bush tax cuts will be used.

Small kittens, increased spending, entitlement sob stories.

ANYTHING to end tax cuts.

Because government always knows best.

reply to post by beezzer


GOVERNMENT passed the tax cuts... so if they're ALWAYS wrong...