CBO's Economic Forecast
inlet13
Posts: 1,979
http://www.cbo.gov/doc.cfm?index=12699
http://blogs.wsj.com/washwire/2012/01/3 ... -forecast/
Key Points:
The nonpartisan Congressional Budget Office released its latest budget and economic forecasts this morning. Both Democrats and Republicans will find campaign trail fodder in the report, as well as reason for concern.
Republicans are likely to hammer Democrats on the high deficit as well as the impact of tax hikes on the economy next year. Democrats are likely to point to the expected impact of spending cuts on economic growth as well as the historically low level of taxes businesses paid this year.
Here are the key points in the report:
1) Growth will slow to just 1.1% in 2013 because of tax increases, spending cuts, and other factors. CBO projects 2012 GDP to increase just 2%.
2) Unemployment rate will stay above 7% until 2015. It will increase to 8.9% at end of this year and hit 9.2% at the end of 2013.
3) Deficit will be $1.1 trillion in 2012, the fourth consecutive year above $1 trillion.
4) The deficit is projected to shrink next year, but how much it shrinks depends on tax and spending choices.
5) Revenues are projected to pick up markedly in future years. Total revenues to jump from $2.3 trillion in 2011 to $3.7 trillion in 2015. That’s the equivalent of going from 15.4% of GDP to 20.2% of GDP.
6) The Social Security Disability Insurance trust fund will be exhausted in 2016. The Medicare hospital insurance trust fund will be exhausted in 2022.
7) If spending cuts and tax increases are allowed to go into effect as required under current law, the deficit will contract sharply to $585 billion in 2013 and $345 billion in 2014.
8) Under current law, the debt will grow $3.1 trillion over next 10 years. If spending cuts and tax increases are reversed, however, the debt would grow $11 trillion. That includes an additional $1.2 trillion in interest on the debt.
http://blogs.wsj.com/washwire/2012/01/3 ... -forecast/
Key Points:
The nonpartisan Congressional Budget Office released its latest budget and economic forecasts this morning. Both Democrats and Republicans will find campaign trail fodder in the report, as well as reason for concern.
Republicans are likely to hammer Democrats on the high deficit as well as the impact of tax hikes on the economy next year. Democrats are likely to point to the expected impact of spending cuts on economic growth as well as the historically low level of taxes businesses paid this year.
Here are the key points in the report:
1) Growth will slow to just 1.1% in 2013 because of tax increases, spending cuts, and other factors. CBO projects 2012 GDP to increase just 2%.
2) Unemployment rate will stay above 7% until 2015. It will increase to 8.9% at end of this year and hit 9.2% at the end of 2013.
3) Deficit will be $1.1 trillion in 2012, the fourth consecutive year above $1 trillion.
4) The deficit is projected to shrink next year, but how much it shrinks depends on tax and spending choices.
5) Revenues are projected to pick up markedly in future years. Total revenues to jump from $2.3 trillion in 2011 to $3.7 trillion in 2015. That’s the equivalent of going from 15.4% of GDP to 20.2% of GDP.
6) The Social Security Disability Insurance trust fund will be exhausted in 2016. The Medicare hospital insurance trust fund will be exhausted in 2022.
7) If spending cuts and tax increases are allowed to go into effect as required under current law, the deficit will contract sharply to $585 billion in 2013 and $345 billion in 2014.
8) Under current law, the debt will grow $3.1 trillion over next 10 years. If spending cuts and tax increases are reversed, however, the debt would grow $11 trillion. That includes an additional $1.2 trillion in interest on the debt.
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Post edited by Unknown User on
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Comments
Its really putting the screws to the people who need help the most.
To think that the ramifications of raising taxes on the rich doesn't include stifling the middle and lower class economies is pretty silly, imho. Either the government is THAT cash strapped, is totally stupid, or sinister ... or all 3?
Good to see some cheery predictions though.
:( :shock:
If I opened it now would you not understand?