Email
Password
Remember meForgot password?
Log in with Facebook Log in with Twitter
Connect your Digital Journal account with Facebook or Twitter to use this feature.

article imageCBO estimates 2011 budget will add $10 trillion to debt by 2020

By Andrew Moran     Mar 5, 2010 in Business
Washington - The Congressional Budget Office released an estimate that states if President Barack Obama's 2011 budget is approved by Congress then the United States will see an extra $10 trillion added onto the national debt in ten years.
At the present time, the United States faces a $12.5 trillion national debt, $1.4 trillion national deficit, $1 trillion trade deficit and $107 trillion in unfunded liabilities and expenditures.
According to a recently released Congressional Budget Office report, if the President’s 2011 budget is implemented then the U.S. federal government would add approximately $9.8 trillion to the national debt, reports CNN Money. More than half of the $9.8 trillion would be interest alone.
The CBO, which believes American debt would be $20.3 trillion, or 90 per cent of the Gross Domestic Product, in 2020, says there are two major contributing factors to the debt: 1) the President’s proposal to extend the 2001 and 2003 tax cuts for the majority of Americans. 2) A proposal to protect middle income families from paying the Alternative Minimum Tax (AMT). Those two proposals are estimated to cost $3.8 trillion between 2011 and 2020.
The Associated Press reports that the latest analysis by the CBO foresees debt held by foreign investors, including China, would skyrocket from $7.5 trillion to $20.3 trillion in 2020, which would force interest payments to quadruple to $916 billion by the end of that timeframe.
"While the president is intent on ramming through Congress a new trillion-dollar health-care entitlement, he appears far less concerned with addressing the looming crisis of entitlement spending already on the books. Instead, he delegates this task to a 'Fiscal Commission' — which would not even report until after the next election,” said Republican Congressman of Wisconsin Paul Ryan.
Nevertheless, Pres. Obama, who inherited a disastrous situation from former President George W. Bush, has promised to slash the national deficit by half by 2013 to $727 billion. However, Economists believe, notes AFP, that the deficit is unsustainable and will erode the nation’s standard of living.
More about Congressional budget office, National debt, Obama
More news from

Corporate

Help & Support

News Links

copyright © 2014 digitaljournal.com   |   powered by dell servers