Wednesday, 19 September, 2018

$1 Trillion Deficits To Return, National Debt To Rise, Projects CBO

Trump tax cuts forecast to send US deficit to $1 trillion in 2020 CBO Predicts Persistently Large US Federal Deficit in Next Decade
| 12 April, 2018, 00:41

The combination of President Donald Trump's massive tax cuts and last month's big-ticket spending bill should drive the federal government's budget deficit toward the $1 trillion market by 2020, two years ahead of estimates, according to a recent report by the Congressional Budget Office (CBO).

The CBO upwardly revised its cumulative deficit forecast over the next decade by $1.6 trillion, to $11.7 trillion. But House Republicans scheduled a vote later this week on adding a balanced budget amendment to the Constitution, which could force some fiscal restraint.

Senator Chuck Schumer of NY said the report "exposes the scam behind the rosy rhetoric from Republicans that their tax bill would pay for itself" and warned that Republicans will now use the rising debt to call for cuts to welfare programmes such as Social Security. It is hard to imagine any cuts to Social Security, Medicare or other public programs, even though they make up a good portion of the budget - That would be a "political non-starter".

Debt held by the public, which has doubled in the past 10 years as a percentage of gross domestic product (GDP), will approach 100 percent of GDP by 2028.

"The CBO's latest report exposes the scam behind the rosy rhetoric from Republicans that their tax bill would pay for itself", Schumer said in a statement Monday. First, the rising possibility of a serious trade war with China, which could cause a tremendous amount of damage to our export sector, trigger a higher rate of inflation and a proportionate increase in interest rates, which would put the brakes on growth.

The Congressional Budget Office on Monday said the federal budget deficit will total $804 billion this year, up from $665 billion last year.

The deficits are expected to drive the national debt from $21 trillion now up to $33 trillion within 10 years. The Trump tax cuts were designed with permanent cuts for corporations and heirs of large estates, coupled with temporary, expiring tax cuts for the middle class.


Under that scenario, deficits could reach $2 trillion a year within a decade, watchdogs said.

The biggest drivers of the problem are interest payments on the debt and the entitlement programs that make up the social safety net.

Members of both parties further added to the deficit in March when they increased military and domestic spending by almost $300 billion over the next two years.

The government would borrow about 19 cents of every dollar it spends this year.

"No one can say they didn't see this coming". "Now that it's upon us, those who have their heads buried in the sand are in for a rude awakening".

"The budget outlook is no reason for alarm", wrote Paul N. Van de Water, senior fellow at CBPP. The modern Republican Party has pioneered a completely novel theory: Governments should balance their budgets when run by Democrats, and run extremely large deficits when run by Republicans.

Recommended

  • Congress observes day-long fast across India for communal harmony, BJP mocks

    Congress observes day-long fast across India for communal harmony, BJP mocks

    Gandhi said the country will not accept that Modi government "spreads violence, hatred in the country". BJP's ideology is to divide the country, crush the Dalits, tribals, minorities.
    US, Israel discussed Syria attack ahead of airstrike

    US, Israel discussed Syria attack ahead of airstrike

    The attacks have come almost a week after Trump expressed his desire to bring the US troops back to the country. The UN Security Council is set to meet in an emergency session today to discuss the poison gas attack.
    Bill Cosby sexual assault retrial begins after delays

    Bill Cosby sexual assault retrial begins after delays

    Mesereau Jr., a high-profile criminal defense veteran who helped Michael Jackson win acquittal in his 2005 child molesting trial. Steele said Constand pursued the civil suit in 2005, after Montgomery County prosecutors declined to bring criminal charges.
  • Stocks of Rusal collapse 50% after United States  sanctions

    Stocks of Rusal collapse 50% after United States sanctions

    The London Metal Exchange aluminium spot price went from $1,967 per tonne on Friday morning to close at $2,155/t yesterday. Russia's currency also took a hit, with the dollar and euro rising to 59.81 and 73.42 against the rouble respectively.
    F1: Vettel wins thrilling Bahrain Grand Prix

    F1: Vettel wins thrilling Bahrain Grand Prix

    Raikkonen's auto came to a halt a few meters later and he took off the steering wheel and dejectedly threw it into the cockpit. The Dutchman had already set a time good enough to progress to the second part of qualifying, however, and will start 15th.
    Germans Still Clueless About Motive in Fatal Van Attack

    Germans Still Clueless About Motive in Fatal Van Attack

    Armin Laschet, the governor of North Rhine-Westphalia state where Munster is located, toured the city on Sunday. Officials said a 51-year-old woman and a 65-year-old man were killed, while 20 others were injured.
  • House Speaker Ryan won't run for re-election

    House Speaker Ryan won't run for re-election

    A source familiar told CNN that Ryan called House Majority Leader Kevin McCarthy about his retirement before the news broke. Two people with knowledge of Ryan's thinking said he has decided against seeking another term, but they did not say why.
    Dockless bike sharing service JUMP gets acquired by Uber

    Dockless bike sharing service JUMP gets acquired by Uber

    Its e-bikes, which were unveiled a year ago in Washington DC, cost $2 (£1.40) for the first half-hour, then 7 cents per minute. The ride-hailing company on Monday said it bought Jump Bikes, a New York-based firm that operates in 40 United States cities.
    Simmons triple-double in LeBron showdown

    Simmons triple-double in LeBron showdown

    He put up his second 40 point triple-double of the season finishing with 44 points, 11 rebounds, and 11 assists. Cleveland Cavaliers' LeBron James , right, drives to the basket against Philadelphia 76ers' Ben Simmons .
  • GOP Florida Gov. Rick Scott officially announces Senate candidacy

    GOP Florida Gov. Rick Scott officially announces Senate candidacy

    Scott was first elected governor in 2010 but he can not run again because of term limits. Rivera-Marin introduced Scott to the crowd and called him "a friend of Hispanics".
    Roma knock Barca out of UCL with stunning comeback; Liverpool into semis

    Roma knock Barca out of UCL with stunning comeback; Liverpool into semis

    Roma suffocated Barcelona with high pressure, prompting the Catalan club to make a series of errant passes and turnovers. Defender Kostas Manolas scored the crucial third goal, heading in at the near post with eight minutes remaining.
    Kim Jong Un Ready To Discuss Denuclearisation With US

    Kim Jong Un Ready To Discuss Denuclearisation With US

    Both sides have met several times in a third country to determine a location for the historic summit, U.S. officials told CNN . Ulan Bator, the capital of Mongolia, is another possible place to hold the meeting.

Iranians killed in alleged Israeli airstrike on Syrian base T-4 Iranians killed in alleged Israeli airstrike on Syrian base T-4 Russian Federation has warned that U.S. strikes in Syria would have "grave consequences", according to a Foreign Ministry statement.

Cubs postpone home opener a day because of snow Cubs postpone home opener a day because of snow Tyler Chatwood (0-1, 1.50 ERA) will make his second start of the season and his Cubs' Wrigley Field debut. Ryon Healy drove in three runs as the Mariners helped Mike Leake (2-0) win again.

Fake candidates list for Karnataka election sends Congress into tizzy Fake candidates list for Karnataka election sends Congress into tizzy In the 2013 Assembly elections, Eshwarappa contested again from the Shimoha assembly constituency and lost to K.B. The polls have become a serious business to most of the politicians especially for the leaders in the Congress.

Labour Party joins ADP Labour Party joins ADP Last week, Mr Corbyn criticised the shooting of Palestinians during protests on the Gaza border. The Labour Party, on Sunday joined Action Democratic Party (ADP) in Lagos.

Volkswagen to replace CEO Matthias Mueller with VW brand chief Herbert Diess Volkswagen to replace CEO Matthias Mueller with VW brand chief Herbert Diess No further information was made available with regards to the precise fate of acting CEO Matthias Mueller. The works council, whose members occupy half the seats on the supervisory board, also declined comment.

Tristan Thompson allegedly caught cheating on Khloé Kardashian Tristan Thompson allegedly caught cheating on Khloé Kardashian As previously reported by the Inquisitr , Khloe Kardashian is stuck in Cleveland until after the birth of her daughter. She is due to give birth to her first child - Tristan's second - within days. "Wishing peace for everyone".

Facebook to let users delete sent messages Facebook to let users delete sent messages Hearings over the issue are scheduled in the US , and the European Union is considering what actions to take against the company. Finally, it declined to say whether messages will disappear automatically as Zuckerberg's did or via a user-set timer.

Commonwealth Games: Weightlifter Laurel Hubbard reveals career likely over Commonwealth Games: Weightlifter Laurel Hubbard reveals career likely over Former New Zealand heptathlete Sarah Cowley-Ross reacts to Tom Walsh's win and Laurel Hubbard competing as a female weightlifter. She previously said: "It would be untrue to say the thought [of a bad reception from the crowd] never crossed my mind".

Border states pledge 1600 troops for President Trump's border fight Border states pledge 1600 troops for President Trump's border fight In California, Brown's spokesman, Evan Westrup, said Monday that state officials are still reviewing Trump's troop request. There is not a end date for the deployment, Abbott talked about: "We may be on this for the prolonged haul".

Kate Middleton's third royal birth: Your guide to the Lindo Wing Kate Middleton's third royal birth: Your guide to the Lindo Wing However, she added the date could change as Middleton gave birth to Prince George and Princess Charlotte much later than expected. Catherine, Duchess of Cambridge (aka Kate Middleton ) is now pregnant with her third child with Prince William .

The Undertaker Returns And Makes Quick Work Of John Cena At Wrestlemania The Undertaker Returns And Makes Quick Work Of John Cena At Wrestlemania Despite Ronda's athletic pedigree, fans were apprehensive about her competing in her very first wrestling match at Wrestlemania . A little more than a year after her disappointing return to the UFC , Rousey is making a new name for herself in the WWE ring.

Forward Conner Lukan died in Humboldt Broncos team bus crash — CP NewsAlert Forward Conner Lukan died in Humboldt Broncos team bus crash — CP NewsAlert Albert Raiders in Midget AAA. "One of the best hockey players and an even greater guy off the ice", Tyson Chizma wrote on Twitter. Saints General Manager Rob Sklaruk shared his sympathies in an official statement. "It's a terrible accident, my God", he said.

Verstappen blames 'power surge' for qualifying crash Verstappen blames 'power surge' for qualifying crash Daniel Ricciardo expressed mixed emotions at Red Bull's pace during qualifying for the second round of the season in Bahrain . The defending F1 champion had a tricky first session, locking his tires and twice taking his Mercedes too wide on corners.

Congress 'throttling' democracy, 'abusing' people's mandate, says PM Modi Congress 'throttling' democracy, 'abusing' people's mandate, says PM Modi He interacted with workers of five Lok Sabhaconstituencies and all 734 district presidents of the party via video conference. The second half of Parliament's Budget Session, which came to a close on Friday, was not an ordinary session.

Kejriwal extends support to TDP leaders over AP's special status demand Kejriwal extends support to TDP leaders over AP's special status demand But the bifurcation was done so quickly and the promises made to the residual Andhra Pradesh is yet to be fulfilled", she said. The MPs are Y V Subbareddy, Mekapati Rajamohan Reddy, Y S Avinash Reddy, V Varaprasad Rao and P V Mithun Reddy.