The 44th President's $4 Trillion Headache

The presidential candidates all have big plans for their time in the White House. Reform health care. Reduce taxes. Close corporate loopholes. Encourage savings. The list goes on.

Like college graduates whose career choices may be limited by their student loan debt, however, the next president could be constrained by the federal budget.

According to the Congressional Budget Office (CBO), the annual budget deficit will improve during the next president's four-year term and end in a surplus of $61 billion by 2013.

But that baseline projection is based on financial assumptions that no one expects to pan out. Two of the biggest roadblocks threatening to upend budgetary nirvana: What to do about the looming expiration of tax cuts enacted in 2001 and 2003, and the growing cost of fixing - or nixing - the Alternative Minimum Tax (AMT).

Keep Reading

Also: Read how the leading Democratic and Republican presidential candidates' tax proposals could affect your take-home pay.

Comments

[speakingtruth2power]

The problem with modern conservative economics is that it denies that debt matters.

As long as we can shove fuel into the economy, the interest paid on the growing debt

is absorbed by the increased revenues. No one will admit that the piper must be paid.

It is very much like a chain letter where everyone makes great money and groupthink

says it can go on forever. Some call it Reaganomics, I call it drinking green Kool-aide.

The bottom line is that the party is over. Debt's a heavy anchor that cannot be denied.

ST2P

[lungfish]

Funny how none of the GOPers left want to talk about how they had a balanced budget with a surplus and a GOP congress and basically everything they needed to hit a home run and demonstrate "compassionate conservatism". Instead they tanked the country, killed a lot of innocent people, trashed America's good name abroad with CIA goon squads and secret prisons, installed partisan hacks instead of competent people, and the Decider himself denigrated the Constitution of the US by saying "Its just a goddamned piece of paper!!"

And here we are. No wonder the GOP is in shambles and Coulter and Limbaugh are talking out loud about supporting Hillary.

Meanwhile, Mr. AntiLobbyist McCain is letting lobbyists run his campaign and conduct business from his campaign bus. Real credible guy... not.

[speakingtruth2power]

Ironic, odd and/or queer but the GOPers are never funny.

[larry278]

Anybody who ever runs for POTUS has to be nuts. The leaders in the race to become POTUS # 44 are nuts & gluttons for punishment on a grand scale to boot. Those who fail to become #44 will consider themselves fortunate by mid 2010.

[oogabooga]

End warmonger entitlements (4 billion for translators in Iraq, just a start). Then we can replace leaky trailers at your local school with a real building - just a start.

[speakingtruth2power]

Trillions for war profiteering and nothing for
our own children. GOP family values at work.

[therealredstateblues]

We need a Bush tax. All republicans and especially those that voted for Bush should have to pay an additional tax to pay down the record deficits Bush and his rubber stamping congress ran up.

[angelwax]

You bet, the jerks that wanted the war should pay for it. Let them republicans prove their patriotism and pay for the war.

[pzdoff]

I'm no economist, just a retiree living on a thirty thousand dollar annual pension. I'm a low maintenance person, and I get by. I would GLADLY pay my fair share of a tax increase if it would help rid this country of the debt that will eventually take us down. If we are to survive, the tax cuts must go, we simply can't afford them. If we are to survive this stupid fucking war must go. If we are to survive, corporate welfare must go. Our own infrastructure is crumbling , and what does our appointed president do.....he destroys another country's infrastructure, and then spends hundreds of billions to rebuild it. Can any of you economists tell me what that does to benefit "we the people"? I know what it does to benefit those who bought and paid for this administration, but what does it do for America?..The neocons plan to shrink government until it's small enough to drag it into the bathroom and drown it in the bathtub didn't work, so they rolled out plan B.....bankrupt it. You know what, it's working. Time to learn chinese and arabic folks.

[WIpatriot]

pzdoff, I agree with your analysis but not your conclusion. This is OUR country. We must fight the evildoers in OUR country. Do not surrender.

[pzdoff]

WIpatriot, the last sentence was meant to be a red flag, not a white one. I don't plan to surrender. I just think we are desperately short on time. Peace my friend.

[Rule Of Law]

Patriot, I like it. We'll fight them over here, so we don't have to fight them over there! :)

[loki]

I would bet Neo Cons are probably hoping its a demorat. That way they can spend the next 4 years blaming others for their screw ups. I can see why the Neo Con Mouths like Limpballs are bad mouthing McCain. Or , maybe he is just doing it because McCain is the worst of the bunch. And thats is saying something in this crop we are forced to choose from this year.

[VivaZapata]

whoever it is, inherits a worm, but with the right effort the US is still salvageable. sacrifice will be necessary, however.

[adc]

One word: Entitlements.

Cut 'em, slash 'em, get rid of 'em.

Phase 'em out (under 45? start saving!) starting next year.

No more Nanny State - we'll all be better off (and so will our kids).

[VivaZapata]

that's right, adc, blame programs that benefit society, not the dumb projects like the bridge to nowhere or an unnecessary war, or bailouts for failing businesses.

[adc]

"dumb projects like the bridge to nowhere or an unnecessary war, or bailouts for failing businesses" don't add up to the $50 trillion Albatross that entitlements do. That's what bankrupting this country.

Savings and investment also benefit this country - try that first. Then consider handouts.

[Notapathetic]

How about no more belligerent pricks running the country and spending unthinkable sums on military madness? (Save a fortune)

How about pulling our bony fingers out of foreign countries and minding our own fucking business for a change? (Save a fortune)

How about DEFENDING our own country only IF we are attacked, and getting every last soldier, sailor, and marine back on American soil where they belong? (Save a fortune)

How about NO special government economic advantages to ANYONE, and allowing people to grow without government advantage or other companies or individuals? (Save a fortune and have a moral decency in place)

How about NO lobbyists unless they lobby without compensation? (Save a fortune)

How about investing in education so our kids can create the future instead of relying on other countries whose kids are getting twice as smart twice as fast? (Create a future fortune)

How about taking the hundreds of billions we would save by getting rid of the military nuts and using about half of it on rebuilding our own countries infrastructure? (Future)

How about NO government overspending no matter how important some Bush-thinker says it is? (You can't overspend....why should the gov't?) (Survival)

[ErnestineBass]

Let me guess, asswipe, you want to privatize Social Security, and do away with Medicare and Medicaid, RIGHT?

STFU.

[adc]

Right! And STFU yourself.

[realitytrumpsbull]

I think the next priznit should make Solomon's choice, and force an across-the-board rebalancing/reduction of all federal spending.
Send forth the information seekers into all the dark and dusty corners, question EVERYthing, get all Office Space about it, bar no holds, I'll have a double Sacred Cowburger, please.
Re-form. It doesn't have to hurt, if you go about it right, but you do have to challenge the norm. I hope the successful candidate for this position will 'enlist' Ron Paul should he not win, for direct guidance on bringing the co-equal branches of government back into balance with each other, independent(love that word) of any/all monetary influences. To carry on as we have is the road to hell, they need someone up there that can actually READ a MAP. Eh?