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I listed this as New Opinion.
The CBO is the source, this is a simple diagram showing exactly why the CBO surplus projection they made in 2000 turned into a very large deficit as opposed to what they forecast.
For those arguing it's government spending...sure. That has something to do with it. But don't conveniently ignore some other points the CBO clearly outlines and can be confirmed by simply comparing % of GDP in *Tax Revenues*
The primary 3 reasons the deficit is huge.
1) 2007-2009 recession - You cannot have a massive recession and keep tax revenues level. Particularly this one because property values dropped like a rock (less property taxes, state shortfalls, the Federal government covers), jobs were lost. Payroll taxes are huge, both in income and for Social Contributions. Less jobs means workers and companies pay less into SS.
2) 2001 and 2003 tax cuts. These tax cuts were made on the basis of that same projected *Surplus*, moreover, they resulted in declined revenues proportional to the size of the economy (the economy grew, but tax revenues never returned to the previous levels proportional to that growth, that means you've cut taxes too far)
Simple point I hope no one disputes. You can't have 0% taxes and have revenues. Likewise, you can't tax everyone 100% and have good growth. There is a balance, we are below that balance.
3) Iraq War and by prosecution of the Iraq War, the Afghanistan War.
The Afghanistan War was a blip on the budget. Until someone had the bright idea that Iraq was an imminent threat to us, and based on *ONE* intelligence source (that later proved to be a false source, it was a CIA source, a snitch, etc, he lied) thought they had found their proof.
Sending 150,000 troops to Iraq was seen as an invasion of the Middle East by a lot of people in that region and muslims outside that region. Afghanistan was not. The world believed the US justified in taking the Taliban/Al-queda out. Not only that, 80% approval ratings for America post 9/11. Some of the highest in the modern era.
Result, resources and focus diverted from the enemy, the enemy is able to entrench in Afghanistan over a long period (basically 4 years in which Iraq was priority #1), world views plummit, new extremists rally to the cause in Afghanistan from around the world.
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The Current POTUS proposals? Stimulus? Hardly any of the 2+ trillion dollar swing.
The Wall St. BailOuts? Not that much, and it will effectively be 0 within a few years on that.
Let's focus on those 3 points and get those solved. Get everyone back to work, end those tax cuts (which includes us in the middle class, sorry! We got tax cuts, child tax credits, etc and we bought houses with them and got HELOCs to buy even more S&^% we don't need), bringing home the bulk of the 200,000 troops we have in the 2 wars currently.
