Tag Archives: CBO

Bob Adelman ~ CBO Director: U.S. Is Headed For The Cliff

The New American | June 7 2012

Doug Elmendorf

Congressional Budget Office Director Doug Elmendorf testified on Wednesday before the House Budget Committee about the federal government’s “Long Term Budget Outlook.” His office just released its latest study which showed two scenarios: one bad, the other worse.

Said Elmendorf:

It is not possible to keep taxes at their [present level] and keep the laws unchanged for Social Security, Medicare and Medicaid…

It is possible to keep taxes at their [present level] but only by making substantial cuts…in [those] large entitlement programs…

Alternatively, it is possible to keep…[those] large entitlement programs unchanged but only by raising taxes substantially on a broad group of Americans…

Even if spending on…other programs [outside the entitlement programs] fell to a smaller share of GDP than we’ve seen at any point since World War II, debt would still be on an unsustainable upward trajectory…

That’s what is facing Congress as 34 Senators and 435 members of the House are deep into their reelection campaigns. And all that Congress is likely to do is use Elmendorf’s comments and his office’s analysis as fodder for their constituents to help them keep their jobs.

A spokesman for likely Republican presidential nominee Mitt Romney said, “Today’s CBO report confirms that President Obama has placed us on a path to fiscal ruin.” President Obama said that it’s President Bush’s fault, since he signed into law those “Bush tax cuts” that resulted in the $15.7-trillion deficit.

House Budget Committee Chairman Paul Ryan echoed Romney: “Today’s CBO report on the deteriorating fiscal situation underscores the obvious: the president’s policies are not working.” He added:

Repeating Europe’s mistakes, the president’s policies call for job-crushing tax increases and harsh disruptions for beneficiaries of government programs as the debt spirals out of control…

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Thirty Years of Unleashed Greed

by Robert Scheer (Truthdig) | Common Dreams
October 28 2011

It is class warfare. But it was begun not by the tear-gassed, rain-soaked protesters asserting their constitutionally guaranteed right of peaceful assembly but rather the financial overlords who control all of the major levers of power in what passes for our democracy. It is they who subverted the American ideal of a nation of stakeholders in control of their economic and political destiny.Between 1979 and 2007, as the Congressional Budget Office reported this week, the average real income of the top 1 percent grew by an astounding 275 percent. And that is after payment of the taxes that the superrich and their Republican apologists find so onerous.

Those three decades of rampant upper-crust greed unleashed by the Reagan Revolution of the 1980s will be well marked by future historians recording the death of the American dream. In that decisive historical period the middle class began to evaporate and the nation’s income gap increased to alarming proportions. “As a result of that uneven growth,” the CBO explained, “the distribution of after-tax household income in the United States was substantially more unequal in 2007 than in 1979: The share of income accruing to higher-income households increased, whereas the share accruing to other households declined. … The share of after-tax household income for the 1 percent of the population with the highest income more than doubled. …”

That was before the 2008 meltdown that ushered in the massive increase in unemployment and housing foreclosures that further eroded the standard of living of the vast majority of Americans while the superrich rewarded themselves with immense bonuses. To stress the role of the financial industry in this march to greater income inequality as the Occupy Wall Street movement has done is not a matter of ideology or rhetoric, but, as the CBO report details, a matter of discernible fact.

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