Congressional Budget Office reports another $1 trillion deficit

Opps !

Not Again !

When will this endless deficit really "end" ?

With tax revenues down, are we to expect some tax increases next year when a new POTUS and COTUS comes to power ?
(who ever they might be)


1/31/12 10:06 AM EST Updated: 1/31/12 1:43 PM EST -- Politico

The government faces a fourth year of trillion-plus deficits in 2012, according to new projections released Tuesday—numbers which also show little relief in the future unless Washington comes to grips with needed changes in its tax and spending policies.

Like Aunt Cassandra coming down from the attic, the Congressional Budget Office steps squarely into the 2012 campaign season with the 147-page report which might have been subtitled “It’s not just the economy stupid, it’s also the debt.”

The $1.079 trillion deficit now projected for this fiscal year ending Sept. 30 is a step backwards from what CBO had predicted in August And to punch home its message, the non-partisan agency outlines an especially grim scenario in which Congress not only extends all the current Bush-era tax cuts but pulls the plug on the $1.2 trillion in sequester set in motion by the Budget Control Act last summer.

The federal budget remains out of balance throughout the decade !!


What Kind of New Taxes Will We See Next Year ??

Nice work OP

Finally someone who is asking the right questions.

Looking at the current GOP Candidates, every single one of them does not want to cut spending. They want to cut projected spending, which actually does nothing to cut actual spending. Except for one Candidate who showed a detailed plan to cut the budget by 1 trillion dollars.

Do I even need to say the name of that one Candidate?

reply to post by xuenchen

Dear xuenchen,

Hello, again. Nice to see you.

What new taxes will we see next year? Well you're not going to like my answer, since it goes against ATS political thinking. I believe it depends on the elections. A fiscal conservative for President and a solidly Republican Congress will give you a different result from Obama and a Congress with at least one Democratic house.

I believe there is a difference between left and right. Feel free to throw stones now.

With respect,
Charles1952

reply to post by charles1952


I agree the elections will make the difference.
But probably only on how they present the problems and solutions.

I think they won't have much choice but to raise everything.

Even a value added tax might be in the works.

Many nations have it.

It's like a big national sales tax.

They might be keeping it quiet for now.

but next January, look out.

Payroll tax increases alone may not yield enough to cover the debts.


VAT basics for consumers

VAT (Value Added Tax) is a tax that you pay when you buy goods and services in the EU (European Union), including the UK. If you have to pay VAT on something, it will normally be included in the price you see.

Standard rate

You pay VAT on most goods and services in the UK at the standard rate.

The standard rate of VAT increased to 20 per cent on 4 January 2011 but was 17.5 per cent for the period 1 January 2010 to 3 January 2011.


Reduced rate

In some cases, for example children's car seats and gas and electricity for your home, you pay a reduced rate of 5 per cent.


Zero rate

There are some goods on which you don't pay any VAT, like:

•most food items
•books, newspapers and magazines
•children's clothes
•some goods provided in special circumstances - for example, equipment for disabled people

Get Ready !