Friday, October 12, 2007

Questions About the US Budget Deficit

The economic news yesterday was that the US Budget Deficit Drops to 5-Year Low. While that seems like good news I have questions I haven't been able to find answers to. I thought the war was not included in the budget that Bush has submitted to Congress. Is the cost of this war included in this deficit or not? $162.8 billion may not seem like much of a deficit (um ok, it does seem huge) but compared to the surplus Bush inherited it seems pretty bad. Republicans will no doubt blame the bursting bubble and 9/11 but isn't cause of the difference really the tax cuts and unnecessary war? Finally Bush is proud that projects show the deficit continuing to decrease until 2012 when it becomes an actual surplus (again); but the reason it goes from deficit to surplus that year is that's when his tax cut expire. Wouldn't ending the tax cuts sooner mean a switch to surplus sooner; and yet Republicans are trying to extend the tax cuts.

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