Deficit Disorder

[Hello~Kitty]

For your reading pleasure ~ http://www.washingtonpost.com/wp-dyn...051001186.html

excerpt :
There's no one in Washington -- no one with power -- trying to balance the budget. President Bush's budget did not ever envision reaching a balance. The Republican Congress's new budget resolution purports to halve the budget deficit by 2010 but does so only on the basis of optimistic assumptions. In floor debate, the Democrats never offered a realistic balanced budget. The closest they came was in the House, where they promised balance by 2012. But that happens only by assuming that all of Bush's tax cuts expire in 2011 -- a position that even many Democrats reject.
Balancing the budget is simply too much trouble. It requires asking unpopular questions about who deserves help, which government programs actually work -- and how to pay for the rest.

[Melonie]

Actually, a cure is already underway ! I even chose a 'liberal' media source for the news ...



(snip)"After three years of rising federal budget deficits, a surge of April tax receipts brought unexpected good news to fiscal policymakers -- the tide of government red ink appears to be receding.

The Treasury Department this week reported there would be a $54 billion swing from projected deficit to surplus in the April-to-June quarter, after an unanticipated gush of tax payments poured into the Treasury before the April 15 deadline. That prompted private forecasters to lower their deficit projections for the fiscal year that ends in September."(snip)

hmmm, lowering tax rates results in higher tax receipts ? This must be 'voodoo economics' part three (with John F. Kennedy being number one and Ronald Reagan being number two).

Balancing the budget is simply too much trouble. It requires asking unpopular questions about who deserves help, which government programs actually work -- and how to pay for the rest.

You'll get no arguments from me on these basic points - although I suspect that there will be arguments aplenty when particular government programs and particular recipients of government help are discussed in detail.

[Casual Observer]

^ Being that part of that surge of federal revenue is mine, it pains me that I sent a huge check to the IRS this year (and the last two years).

But it pains me more that we have zero spending discipline. I'm all about tax cuts, but we need spending caps, reforms and amendments so badly, it's academic--and yet completely ignored by our ostensibly fiscally conservative GOP members. It's shameful.

[Destiny]

But it pains me more that we have zero spending discipline. I'm all about tax cuts, but we need spending caps, reforms and amendments so badly, it's academic--and yet completely ignored by our ostensibly fiscally conservative GOP members. It's shameful.

Me too. The answer? CO for Prez in '08!!!!

[Melonie]

also, ...

"U.S. Trade Deficit Falls Sharply in March to Lowest Level in 6 Months; Exports at All-Time High

WASHINGTON (AP) -- The U.S. trade deficit fell sharply in March to $54.99 billion, the lowest level in six months, as U.S. exports climbed to an all-time high. Imports declined, reflecting in part a slowdown in clothing shipments from China.

The Commerce Department reported Wednesday that the gap between what the United States imports and what it sells to foreign countries narrowed by 9.2 percent from a record monthly deficit of $60.57 billion set in February."(snip)

I'm also a huge supporter of fiscal discipline, and would willingly join up with fellow fiscal conservatives to slap GWB up side the head for instituting the prescription drug benefit for seniors, among other spending increases. However I accept that political realities are what they are, that in all probability had GWB not instituted the prescription drug benefit for retirees he would not have won the presidency, and console myself with the knowledge that 'fiscal restraint' under a democratic president would have been even more of a joke.

On the other hand, it does really put things in perspective to have a specific look at where the gov't is actually spending tax money, and how much it is spending in particular areas versus other areas. Far and away the leading category is social spending. Medicare, Medicaid and Social Security alone represent about 33% of this year's total federal budget, ten times the amount of dollars spent on Iraq. Yet when it comes to political discussions regarding future reductions in the amount of gov't contributions to Social Security i.e. privatization, when it comes to reducing Medicaid payouts to illegal aliens etc. it would appear that one particular political party opposes these reductions in gov't spending much more strenuously than the other !

Actually, California is secretly celebrating today - because as of today they are now able to pass on part of the costs of providing Medicaid assistance to illegal aliens to the federal gov't, i.e. to every taxpayer in every state, rather than bearing the full financial burden of their 'compassionate' decision regarding state Medicaid eligibility requirements. I guarantee you that this particular development won't get front page coverage in mainstream media !