A $400 Billion Deficit and Permanent Tax Cuts
In a Press Briefing on January 12, Joel Kaplan, President Bush's Deputy Director of the Office of Management and Budget announced an upward revision of the 2006 budget deficit, from the July estimate of $341 billion, to a new figure of about $400 billion. This fiscal year began October 1, 2005 and ends September 30, 2006.
He blamed the increase on last year's hurricanes—and admittedly, the previous estimate was made before the hurricanes struck. But Kaplan didn't mention Iraq, or likely increases in national debt interest, as contributing causes. Only in response to a reporter's question did he acknowledge that the President intends to continue demanding that his tax cuts be made permanent. Kaplan did not acknowledge that the tax cuts, in the face of increased spending will contribute to the mammoth deficit.
Think about it. This is your money. Your share of that $400 billion deficit for fiscal year 2006 will be close to $2,900. If you have two working people in your household, it's close to $5,800.* Suppose you calculated your personal budget for this year, and saw that you would make $5,800 less than your necessary spending. Would you go to your boss and tell him to cut your salary—just to make him feel better?
Of course not—you're not crazy!
*Personal share figures are derived by dividing the deficit by the approximate number of working people.
|copyright © 2008, J. C. Adamson|