8 thoughts on “It’s DEFICIT MAN!

  1. Footnote says:

    When did Republicans stop worrying and learn to love budget deficits? Over the next decade, their tax plan would add at least $1 trillion to the national debt. That would be on top of an additional $10 trillion in deficits over the same period already being by forecast by the Congressional Budget Office. As a share of the economy, the national debt would be rising to levels last seen during the height of World War II. (AP Dec 2017) https://www.apnews.com/79c68d1dea90416bbcd027d9b1e0c69f
    After the Republicans gained control of the US Senate in the 2002 election, giving them across-the-board dominance of the legislative and executive branches of the federal government, the key players in the administration of President George W. Bush gathered to discuss fiscal policy.
    Vice President Dick Cheney wanted to cut taxes for the rich.
    Treasury Secretary Paul O’Neill was skeptical. According to his recounting of the incident in Ron Suskind’s brilliant book, The Price of Loyalty, O’Neill expressed concern that a trillion dollars worth of tax cuts had already been enacted. O’Neill was no liberal. He liked tax cuts. But with the country rebuilding from the economic slowdown after the 9/11 attacks, and with a war being fought in Afghanistan and another on the horizon in Iraq, O’Neill noted that the budget deficit was increasing. And he argued against Cheney’s position, suggesting that another tax cut was unnecessary and unwise.
    “You know, Paul, Reagan proved that deficits don’t matter,” said the vice president. “We won the mid-term elections, this is our due.”
    O’Neill was, according to Suskind, left speechless. (The Nation. March 2013) https://www.thenation.com/article/gotta-sequester-or-was-cheney-right-deficits-dont-matter/

  2. Presto change-o says:

    A confidential government report has provided President Donald Trump with a legal rationale to impose heavy new tariffs on foreign cars as soon as this spring, a prospect fiercely opposed by White House officials and congressional Republicans alarmed by its enormous economic and political stakes. https://www.politico.com/story/2019/03/20/trump-tariffs-automobiles-commerce-1228344 The Commerce Department submitted the report to the White House in mid-February, triggering a 90-day period for Trump to decide whether to impose tariffs, which could reach as high as 25 percent, on imported autos. It concluded that Trump could justify the tariffs on national security grounds and offered a range of options in response — putting the decision in the president’s hands, four people familiar with its conclusions told POLITICO.
    Although the existence of the report was previously known, the administration has kept its findings hidden — including from a powerful Republican senator who has demanded to see it — and its conclusion had not been previously reported.

  3. Spree Lunch says:

    Treasury Secretary Steven Mnuchin on Friday issued a warning Friday that the US government is at risk of running out of cash sooner than expected. https://www.cnn.com/2019/07/12/politics/mnuchin-congress-letter-debt-crisis/index.html In a letter to Democratic House Speaker Nancy Pelosi, Mnuchin wrote that the US might default on its obligations as soon as early September, before Congress returns from its summer recess.
    The U.S. government posted an $8 billion budget deficit in June, according to data released by the Treasury Department. https://www.reuters.com/article/us-usa-economy-budget/us-government-posts-8-billion-deficit-in-june-idUSKCN1U62GS

  4. Dadgummit says:

    The federal budget deficit is growing faster than expected, even as President Trump openly considers more tax cuts and other ideas that would add to government debt. (NYT 8/21/19) https://www.nytimes.com/2019/08/21/us/politics/deficit-will-reach-1-trillion-next-year-budget-office-predicts.html
    The deficit will reach $960 billion for the 2019 fiscal year, which ends Sept. 30, and $1 trillion for the 2020 fiscal year, the Congressional Budget Office said in updated forecasts released on Wednesday.
    …The president has mused in recent days about moving to unilaterally reduce capital gains taxes, a move that is estimated to add $100 billion to deficits over the next decade, and to cut payroll taxes, which could reduce revenues by $75 billion a year for every percentage point cut in payroll tax rates.

  5. Hey, Rube! says:

    Trump is considering to slash Medicare and Social Security during his possible second term in the White House to tackle the ever-growing fiscal deficit, according to a report by the New York Times. https://www.nytimes.com/2019/08/21/us/politics/deficit-will-reach-1-trillion-next-year-budget-office-predicts.html
    In Trump’s proposed 2020 budget, officially titled “A Budget for a Better America”, the president proposed that over the next ten years the U.S. would slash Medicaid by US$1.5 trillion, Medicare by US$845 billion, and Social Security by US$25 billion. https://www.whitehouse.gov/wp-content/uploads/2019/03/budget-fy2020.pdf
    Despite promising during his 2016 campaign that he would not touch the programs, Trump seems set to continue on a two-step plan based on the 2017 tax-cut bill. Something, Senator and Democratic presidential candidate, Bernie Sanders, warned about two years ago.
    As the federal budget deficit grows faster – it is expected to surpass US$1 trillion in 2020 partly due to Trump’s tax and commercial foreign policies – the GOP and right-wing groups will try to blame welfare programs in order to maintain benefits for the rich.
    “The Trump/GOP tax cuts for the wealthy will add over US$1.5 trillion in debt,” said the National Committee to Preserve Social Security and Medicare. “Now we know how they’ll pay for those tax cuts, by cutting Social Security and Medicare.”
    According to the Washington Post, Trump has already “instructed aides to prepare for sweeping budget cuts if he wins a second term in the White House.” https://www.washingtonpost.com/business/economy/trump-tells-aides-to-look-for-big-spending-cuts-in-second-term-seeding-confusion-about-budget-priorities/2019/07/19/3e9e9bde-a98c-11e9-86dd-d7f0e60391e9_story.html

  6. Daniel 5:5 says:

    “It is not hard to imagine worsening social unrest among a generation that is falling behind economically and feels betrayed by a massive national debt that was incurred without any obvious benefit to them.” Seth A. Klarman, who manages $27 billion in assets and has a personal fortune $1½ billion, in a letter to business and political leaders at the January 2019 annual meeting of the World Economic Forum in Davos Switzerland.

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