Budget Question

[cawacko]

This is the article Damo posted yesterday. It says Obama failed to live up to his promise to cut the deficit in half by the end of his first term. I was discussing this with a buddy and he said the article is wrong because even though Obama's proposed budget doesn't half the deficit we won't actually know until the end of the year and it's possible we could have a huge surge in revenues and big cuts in spending which will allow the deficit to be halved.

Is he correct and this article was premature or based on his budget it is accurate to say today he won't achieve his promise?

(I'm not trying to ask or argue this in a partisan manner. I'm just trying to understand the process.)



http://abcnews.go.com/blogs/politics/2012/02/obamas-broken-deficit-promise/

 

[Rune]

The opera isn't over untill the fat lady sings.

 

[Bonestorm]

This is the article Damo posted yesterday. It says Obama failed to live up to his promise to cut the deficit in half by the end of his first term. I was discussing this with a buddy and he said the article is wrong because even though Obama's proposed budget doesn't half the deficit we won't actually know until the end of the year and it's possible we could have a huge surge in revenues and big cuts in spending which will allow the deficit to be halved.

Is he correct and this article was premature or based on his budget it is accurate to say today he won't achieve his promise?

(I'm not trying to ask or argue this in a partisan manner. I'm just trying to understand the process.)



http://abcnews.go.com/blogs/politics/2012/02/obamas-broken-deficit-promise/

I'd say that he's technically correct in that we won't know the budget deficit until the end of the budget year, but the chances of revenues increasing enough to actually meet that target are highly unlikely.

 

[Cancel 2016.2]

I'd say that he's technically correct in that we won't know the budget deficit until the end of the budget year, but the chances of revenues increasing enough to actually meet that target is highly unlikely.

exactly. They would have to jack up tax rates or cut spending or some combination of the two and they would have to do so drastically to halve the deficit.

The odds of either of the two being done in an election year are approximately 1 in a bajillion.

 

[Bonestorm]

exactly. They would have to jack up tax rates or cut spending or some combination of the two and they would have to do so drastically to halve the deficit.

The odds of either of the two being done in an election year are approximately 1 in a bajillion.

Of the economy could expand extremely rapidly, but that ain't likely neither.

 

[cawacko]

exactly. They would have to jack up tax rates or cut spending or some combination of the two and they would have to do so drastically to halve the deficit.

The odds of either of the two being done in an election year are approximately 1 in a bajillion.

My buddy thinks they may do something like that during the post election lame duck session.

 

[Cancel 2016.2]

Of the economy could expand extremely rapidly, but that ain't likely neither.

lol... true... but as you stated, not likely.

 

[Bonestorm]

My buddy thinks they may do something like that during the post election lame duck session.

The fiscal year ends at the end of September.

 

[Cancel 2016.2]

My buddy thinks they may do something like that during the post election lame duck session.

good luck with that if Obama loses.

My suggestion (as a starting point) would be to raise cap gains taxes to ordinary income tax levels (something I agree with Obama on).

Then I would drop corporate tax rates to 10%, while also eliminating corporate subsidies. (personally I would prefer to eliminate the corporate tax all together, but this would at least have a shot)

 

[cawacko]

The fiscal year ends at the end of September.

So pardon my dumb question then but when we are talking about the end of Obama's first term as far as the deficit is concerned are we looking at September 30, 2012 or January 19, 2013?

 

[Bonestorm]

So pardon my dumb question then but when we are talking about the end of Obama's first term as far as the deficit is concerned are we looking at September 30, 2012 or January 19, 2013?

I don't know. That seems to be between you and your buddy. In my view, deficits should be measured based on fiscal year and if Obama hasn't halved the deficit by the end of FY2013, he hasn't done what he said he would do.

 

[Mott the Hoople]

Considering how accurate past budgets had been my answer would be April 1, 2012.

 

[Cancel 2016.2]

So pardon my dumb question then but when we are talking about the end of Obama's first term as far as the deficit is concerned are we looking at September 30, 2012 or January 19, 2013?

You have to look at the fiscal year end.

 

[Disillusioned]

This is the article Damo posted yesterday. It says Obama failed to live up to his promise to cut the deficit in half by the end of his first term. I was discussing this with a buddy and he said the article is wrong because even though Obama's proposed budget doesn't half the deficit we won't actually know until the end of the year and it's possible we could have a huge surge in revenues and big cuts in spending which will allow the deficit to be halved.

Is he correct and this article was premature or based on his budget it is accurate to say today he won't achieve his promise?

(I'm not trying to ask or argue this in a partisan manner. I'm just trying to understand the process.)



http://abcnews.go.com/blogs/politics/2012/02/obamas-broken-deficit-promise/

Yes he'd right in the same way that a man struggling with debt could theoretically get a big promotion and be able to pay it off, or a gambler trying to pay off his bad judgements might have a streak of luck and pay off his bookie. It's possible but in reality, it's not going to happen