Brian Riedl published a report for the Heritage Foundation entitled: New CBO Budget Baseline Shows that Soaring Spending—Not Falling Revenues—Risks Drowning America in Debt. The title might just as well have been “The President and Congress are Killing America.” See an abstract from the report below and click the link to read the rest.
The Congressional Budget Office (CBO) has updated its 10-year budget baseline, and America’s fiscal outlook continues to worsen. The CBO projects $6.2 trillion in additional deficits over the next decade. This darkening budget forecast would have been even worse, were it not for the unrealistic assumptions that Congress requires the CBO to employ to make future budget deficits appear smaller.
With more realistic assumptions, the budget baseline shows that:
Even as war spending phases out and the economy recovers, the projected budget deficit never drops below $1 trillion, and reaches nearly $2 trillion by 2020;
The national debt held by the public is set to surpass 100 percent of gross domestic product (GDP) by 2020;
By 2020, half of all income tax revenues will go toward paying interest on a $23 trillion national debt;
Federal spending per household, which has risen from $25,000 to nearly $30,000 over the past three years, would top $38,000 by 2020. The national debt per household, which was $52,000 before the recession, would approach $150,000 by 2020; and
Even if all tax cuts are extended, revenues will still surpass the historical average—18 percent of GDP—by 2020. The reason the deficit will surge 6 percent of GDP above its average is because spending will surge to 6 percent of GDP above its average.
These spending and deficit trends are completely unsustainable. Yet President Obama and Congress continue to push spending and budget deficits even higher with endless failed “stimulus” spending that is now expected to continue into the middle of this decade. They have also enacted a massive new health care law that—far from reining in spiraling health care costs—increases spending (and likely deficits) even further. In short, Washington is digging this budget hole deeper.
The article clearly defines how the congress has instructed the Congressional Budget Office to use unrealistic assumptions to minimize the apparent scope of their folly. Read the article.
How anyone could simply wave off this ugly situation saying it doesn’t matter is beyond me. And how anyone can conclude that the behavior of the President and the Congress (both parties) is anything less than criminal baffles me.