CBO JANUARY BUDGET AND ECONOMIC OUTLOOK SHOWS OBAMA BEING HANDED FISCAL DISASTER
CBO's January 2009 Budget and Economic Outlook shows that President-elect Obama is being handed a fiscal disaster. CBO is now showing a deficit of approximately $1.2 trillion in 2009, more than two-and-a-half times last year's record deficit. And notably, CBO's estimate does not include the cost of the economic recovery package being considered. CBO's ten-year outlook confirms that with current policies we will see record deficits for years to come. And over the long-term, the combination of the retiring baby boom generation, rising health care costs, and inadequate revenues will make matters even worse – exploding deficits and debt to clearly unsustainable levels.
CONGRESS PASSES FINANCIAL RESCUE PLAN
On October 1 and 3, the Senate and House, respectively, passed the Emergency Economic Stabilization Act of 2008, a bipartisan plan to rescue the nation's failing economy. The plan includes a number of critical taxpayer protections that were not included in President Bush's original proposal. Notably:
• Taxpayers will receive an equity stake in companies participating, so they have a potential to profit when markets recover.
• Funding will be released in three installments, instead of a lump sum, to allow for additional Congressional review.
• An oversight board will ensure that the Treasury actions protect taxpayers.
• No ‘golden parachutes' will be allowed – with executive compensation capped for companies participating.
• And the FDIC insurance cap will be raised to $250,000 per bank account.
CBO BUDGET UPDATE SHOWS FISCAL MESS BEING HANDED OFF TO NEXT ADMINISTRATION
The next President will be inheriting a budget and economic outlook that is far worse than most people realize. CBO's summer budget update confirms that President Bush and his Republican colleagues are handing off a fiscal mess to the next Administration. They have plunged our nation into a chasm of deficits and debt. And their irresponsible fiscal policies are leaving behind an economy that is weak and getting weaker.
MID-SESSION REVIEW CONFIRMS FAILURE OF BUSH FISCAL POLICIES
OMB's FY 2009 Mid-Session Review confirms that President Bush will be remembered as the most fiscally irresponsible President in our nation's history. Americans are worse off and our economy is in worse shape because of his reckless fiscal policies. With his eight years in office, he will have had the five highest deficits ever recorded. And the highest of those deficits, $482 billion, is now projected to come in 2009, as he leaves office.
CONGRESS ADOPTS FY 2009 BUDGET RESOLUTION
On June 4 and 5, the Senate and House, respectively, passed the Fiscal Year 2009 Budget Resolution – marking the first time Congress has adopted a budget during an election year since 2000. The resolution charts a new way forward for the country. It provides tax relief for the middle class; makes needed investments in energy, education, and infrastructure; and supports our troops and veterans. And the resolution restores fiscal responsibility – complying with a strong pay-as-you-go rule and returning the budget to surplus in 2012 and 2013, without raising taxes.
FY 2009 SENATE BUDGET RESOLUTION: STRENGTHENING THE ECONOMY, MAKING AMERICA SAFER
The Fiscal Year 2009 Senate Budget Resolution strengthens the economy, creates jobs, and makes America safer. It responds to the current economic slowdown by providing additional stimulus for the economy, tax relief for the middle class, and makes needed investments in energy, education, infrastructure, and health care. It supports our troops, provides for our veterans, and protects the homeland. And it reaches balance in 2012 and 2013, without raising taxes.
BUSH FY 2009 BUDGET: MORE OF SAME FAILED FISCAL POLICIES
President Bush’s FY 2009 Budget proposes more of the same failed fiscal policies the President has embraced throughout his time in office – more deficit-financed war spending, more deficit-financed tax cuts tilted to benefit the wealthiest, and more borrowing from foreign nations like China and Japan. The result can only be the same – a further explosion of debt and the undermining of our nation’s economic security. This budget will be quickly forgotten. But, unfortunately, the President’s legacy of debt will stay with us, as it is passed on to future generations.
CBO JANUARY BUDGET AND ECONOMIC OUTLOOK SHOWS WORSENING DEFICIT IN 2008
CBO’s new projections show that the deficit will worsen in 2008, due, at least in part, to our slowing economy. And CBO’s baseline projections actually understate the likely short-term deficit levels, because they exclude expected costs such as a stimulus package and additional war funding requested by President Bush. Once these costs are added in, the deficit in 2008 is likely to exceed $350 billion, and the debt is likely to increase by over $600 billion.
CONRAD AND GREGG INTRODUCE BIPARTISAN FISCAL TASK FORCE
Chairman Conrad and Ranking Member Gregg have joined forces to offer the Bipartisan Task Force for Responsible Fiscal Action Act, a blueprint for prompting swift, bipartisan action to substantially improve the nation’s long-term fiscal imbalances.
MID-SESSION REVIEW FAILS TO CHANGE BUSH FISCAL RECORD
Nothing in the Bush Administration's Mid-Session Review changes the failed fiscal record of President Bush. He has increased spending by nearly 50 percent since taking office, while at the same time repeatedly cutting taxes primarily on the wealthiest. The result has been that the $5.6 trillion projected surplus he inherited has been wiped out. And debt has exploded on his watch – rising from $5.8 trillion in 2001 to approximately $9 trillion by the end of this year.
CONGRESS ADOPTS FY 2008 BUDGET RESOLUTION
On May 17, the Senate and House adopted the Fiscal Year 2008 Budget Resolution. The Budget Resolution provides a fiscally responsible plan for our country. It funds critical national priorities, such as kids' health, education, and veterans' health care, while returning the budget to surplus by 2012. And it achieves this goal without raising taxes.
FY 2008 SENATE BUDGET RESOLUTION: MEETING PRIORITIES WHILE RESTORING FISCAL RESPONSIBILITY
The Fiscal Year 2008 Senate Budget Resolution provides a fiscally-responsible budget plan for our country. It funds critical national priorities and reaches balance without raising taxes. While no single budget resolution can solve all of our budget challenges, this plan will begin to put the nation back on a sound fiscal path.
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