Deficits and Debt: Why we’re in the mess we’re in.by Denise Early on Jul. 26, 2011, under Health
An article on Bloomberg.com summarized the financial mess we’re in very nicely and concisely. Interestingly, Medicare and Social Security are not mentioned as causes of the skyrocketing deficit and debt of the United States government.
Below are excerpts from the Bloomberg article. The full article can be found here.
The 2001 and 2003 tax cuts, which lowered tax rates on income, dividends and capital gains, increased the federal budget deficit by $1.7 trillion over a decade, according to the Center for Budget and Policy Priorities, a non-partisan left-of- center group in Washington that studies fiscal policy.
The two-year extension of those tax cuts that Obama signed will cost $857.8 billion, according to the Congressional Joint Committee on Taxation.
The 2003 Medicare prescription program [Part D] approved by President George W. Bush and a Republican-dominated Congress has cost $369 billion over a 10-year time frame, less than initially projected by Medicare actuaries.
TARP, the $700-billion bailout of banks, insurance and auto companies, has cost less than expected. McConnell, Boehner, Cantor and Ryan all voted in October 2008 for the program, which stoked the rise of the Tea Party movement. ….Many institutions have repaid the government. The latest estimated lifetime cost of the program is $49.33 billion, according to a June 2011 report by the Treasury Department
Together, a Bloomberg News analysis shows, these initiatives added $3.4 trillion to the nation’s accumulated debt and to its current annual budget deficit of $1.5 trillion.