How the Deficit Got This Big

<snip>
With President Obama and Republican leaders calling for cutting the budget by trillions over the next 10 years, it is worth asking how we got here — from healthy surpluses at the end of the Clinton era, and the promise of future surpluses, to nine straight years of deficits, including the $1.3 trillion shortfall in 2010. The answer is largely the Bush-era tax cuts, war spending in Iraq and Afghanistan, and recessions.

Despite what antigovernment conservatives say, non-
defense discretionary spending on areas like foreign aid, education and food safety was not a driving factor in creating the deficits. In fact, such spending, accounting for only 15 percent of the budget, has been basically flat as a share of the economy for decades. Cutting it simply will not fill the deficit hole.

The first graph shows the difference between budget projections and budget reality. In 2001, President George W. Bush inherited a surplus, with projections by the Congressional Budget Office for ever-increasing surpluses, assuming continuation of the good economy and President Bill Clinton’s policies. But every year starting in 2002, the budget fell into deficit. In January 2009, just before President Obama took office, the budget office projected a $1.2 trillion deficit for 2009 and deficits in subsequent years, based on continuing Mr. Bush’s policies and the effects of recession. Mr. Obama’s policies in 2009 and 2010, including the stimulus package, added to the deficits in those years but are largely temporary.

The second graph shows that under Mr. Bush, tax cuts and war spending were the biggest policy drivers of the swing from projected surpluses to deficits from 2002 to 2009. Budget estimates that didn’t foresee the recessions in 2001 and in 2008 and 2009 also contributed to deficits. Mr. Obama’s policies, taken out to 2017, add to deficits, but not by nearly as much.


...more
http://www.nytimes.com/2011/07/24/opinion/sunday/24sun4.html?_r=1&ref=opinion


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Good Tax Paying American Jobs so MultiNational Corporations can pay 0% Taxes on Foreign Profits

http://www.gao.gov/new.items/d08950.pdf

This chart shows, primarily, the year to year effects of the Bush Tax Cuts, and the fact that Bush is responsible for the greatest part of the debt .... Not Obama ...

Dems really need to get this out there ....

Like the little man from Texas, Ross Perot - SHOW the fucking charts .... People get them ...

You can merely continue spending at a "Fix Rate" over a period of declining Tax Revenue and create a deficit

Come on - this is "First Grade Math" and way too many Wall St. Enablers purposely omit the affect of the shrinking middle class income on the deficits.

Too bad so many people do not understand first grade math.

The fact of 'The Bush Tax Cuts' is the direct issue when looking at this chart ..... Not the expatriation of capital and lost taxes due to that expatriation ... Yes, while it is very important, it is not specifically germane to the relevance of these charts and how they tie to the Bush Tax Cuts, which are a focus as a specific political element that people understand ....

I am sure there are a billion reasons why the charts reflect the losses that they do, but 'Bush Tax Cuts' are the overarching cause ...

Your reference to 'first grade math' was an unnecessary ad hominem .... It was uncalled for ..... I work in a scientific field and I am quite aware of basic mathematics, thank you ...

and completely ignore the Corporate Tax Cuts and Corporate Tax Code adjustments that encouraged Outsourcing Good Paying American Jobs to foreign countries as a means to avoid Taxes altogether.

In 2010 as Wall St reaped the benefits of the "Trickle Down Recovery", Net Corporate Tax Revenue decreased 6.7%

http://www.taxfoundation.org/research/show/27181.html

Sure America has one of the Highest Corporate Tax Rates in the world. They also have more Corporate Tax Loopholes then the average American can shake a stick at

Since revenue is so dependent upon the income tax, if you cut incomes by 20 - 30% on those paying the tax, shift that income to the upper income tax brackets which are then cut in half, the deficit IS affected from the revenue side.

My point is: This chart means something to the regular joe ..... It gets their attention easily ...

You want to go door to door and explain macroeconomic theory to your neighbors ? ..... Good luck with that ....

The chart is the way to go and to keep it simple. I was just elaborating a bit on your simplification.

and every American understands that equals LESS TAXES

Why Wall St Ignores this is the only real mystery

But YES - you chart shows how much the Deficit increased under Bush - But guess what ? Ignoring the effect the current depression is having on reducing working class wages only means soon the charts will show an equally or Higher Revenue Deficit under Obama

can do is lie lie lie and spread lies and disinformation.

TV news is so afraid of being called "LiberalBiased™" that they bend over backwards to

- Allow Republicans and their Talking Heads to say ANYTHING
- Attack Democrats about anything Democrats say

when the GOP ruled the roost on both sides of Pennsylvania Ave.

Bookmarked into the truth arsenal to be used frequently when and where needed.

And to take the stand on the wealthiest getting huge tax breaks while putting the financial burden on middle and lower class Americans....
All while stating that most of America backs them?????
MY ASS...
How American is that????
Corporate interest over the American People is a crime now allowed for the first time in American History by our Supreme Court..
With our Justice Dept now Politically corrupted..
I believe this has created a atmosphere of anything goes as long as you can get away with it...
From Local to the Federal Government levels...
WE are now a Police state..
Fact is we do live in a whole new Country..
America Inc....