President’s Deficit Commission Releases Not-So-Great Final Proposal
Dec 1, 2010 by Sam Rosen-Amy
At long last, after months of meetings and deliberation, the much-hyped National Commission on Fiscal Responsibility and Reform (the Deficit Commission) released its final report earlier today. Tasked by the President to slash the budget deficit by 2015, the Commission had until today to release a plan. If fourteen of the eighteen members of the Commission vote to approve it, the then-leaders of the House and Senate (Rep. Nancy Pelosi (D-CA) and Sen. Harry Reid (D-NV)) agreed to bring the plan up for a vote.
Conservatives should get Their Facts Straight before Criticizing QE2
Nov 19, 2010 by Gary Therkildsen*
It seems the Federal Reserve's latest proposed move to stimulate the economy and reduce unemployment isn't that popular with the GOP. On Wednesday, the party's leadership sent a letter to Federal Reserve Chair Ben Bernanke expressing concern that the plan to purchase an additional $600 billion worth of U.S. Treasury bonds might produce “hard-to-control, long-term inflation.” Nothing in the available economic data, however, even hints at an uptick in inflation.
read in fullThe Brewing Showdown over a Government Shutdown
Nov 16, 2010 by Gary Bass*
The Treasury Department says that some time in the first or second quarter of next year, the government will need to shut down unless Congress raises the debt ceiling so that additional borrowing can occur to keep things running. This could be a battle royale, creating showdowns within the Republican Party between the Tea Party activists and establishment members, as well as between the Republican Party and President Obama.
Fiscal Commission Releases Draft Proposal, World Flips Out
Nov 11, 2010 by Sam Rosen-Amy
Remember that Fiscal Commission (officially the National Commission on Fiscal Responsibility and Reform) President Obama created back in February, which he tasked with balancing the budget by 2015? Turns out solving the nation’s fiscal crisis isn’t quite as easy as it sounds. Yesterday, the Commission’s two co-chairs released a proposal of sorts, a draft of a plan that would bring down the deficit to 2 percent of GDP by 2014, and lower the national debt to 34 percent of GDP by 2040. The co-chairs trumpeted those figures, but the plan was greeted by almost universal ire, since it attacks sacred cows on both the left and the right. Anti-tax crusader Grover Norquist threatened that Republicans who supported the proposal would be breaking their “no tax” pledge. Richard Trumka, head of the AFL-CIO, said the plan “tells working Americans to ‘Drop Dead.’”
CBO Monthly Budget Review, October 2010
Nov 10, 2010 by Gary Therkildsen*
The Congressional Budget Office (CBO) has released its Monthly Budget Review (MBR) for October. This latest MBR finalizes September's report that projected a deficit $125 billion less than the shortfall recorded in 2009. It turns out the government incurred a $1.3 trillion deficit, which is only $122 billion less than the deficit Uncle Sam racked up in 2009. On a positive note, though, it's confirmed that this the biggest one-year nominal drop in the deficit ever recorded.
read in fullHow Difficult Will Raising the Debt Ceiling in the New Congress Be?
Nov 3, 2010 by Gary Therkildsen*
In February, Congress was barely able to raise the federal government's debt ceiling to allow Uncle Sam to continue borrowing. The votes, which occurred along strict partisan lines, only provided the government with one year's worth of additional borrowing capacity. With a new wave of conservative lawmakers on the way to Capitol Hill in January, will commitments to dogmatic principles by a majority of new members prevent the government from meeting its debt obligations?
read in fullWhat the American People Want
Nov 3, 2010 by Craig Jennings
After securing a Republican majority in the House of Representatives, the top two House Republicans -- Speaker of the House-to-be John Boehner (R-OH) and Marjority Leader-to-be Eric Cantor (R-VA) -- offered their governing philosophy: Listen to the American people.
read in fullCRS: Permanently Extending Bush Tax Cuts to Cost $5 Trillion
Nov 1, 2010 by Gary Therkildsen*
In a report released last week, the Congressional Research Service (CRS) revised the total cost of permanently extending all of the Bush tax cuts to $5.048 trillion over the next ten years. The revised amount, which is significantly higher than the $2.8 trillion figure CRS reported in September, takes into account the cost of servicing the debt due to lost revenue and indexing the alternative minimum tax (AMT) to inflation.*
CBO Monthly Budget Review, September 2010
Oct 13, 2010 by Gary Therkildsen*
Last Thursday, the Congressional Budget Office (CBO) released their last Monthly Budget Review (MBR) for the fiscal year. So how much debt did Uncle Sam rack up in 2010, you ask. Well, just under $1.3 trillion. This figure is $50 billion less than what CBO projected just last month and is "$125 billion less than the shortfall recorded in 2009." Everyone say, "Hooray" for deficit reduction.
read in fullFiscal Commission to Produce Sensible Solutions to Debt/Deficit Dilemma Soon
Sep 30, 2010 by Gary Therkildsen*
No, I'm just kidding. In fact, according to a Congressional Quarterly (subscription) article published yesterday, it looks like expected Republican congressional electoral gains this fall may completely gridlock what are already complicated negotiations within the commission over addressing our nation's problematic mid- to long-term fiscal issues.
read in full
