The Mudcat Café TM
Thread #132754   Message #3020108
Posted By: Sawzaw
31-Oct-10 - 01:58 PM
Thread Name: BS: Unpopular Views of Obama Administration
Subject: RE: BS: Unpopular Views of Obama Administration
"even Dems were scared to push for single payer" Seen that Bill Moyers segment yet Bobert?

"A recent ABC poll asked people if their taxes had gone up or down under Obama and a whopping 61% said they hasd gone up???"

So every body that says their taxes have gone up are too stupid to know?

"tax cut for 95% of tax payers" So how many of that 95% paid any taxes to begin with? Just because they were tax payers doesn't mean they ended up owing or paying any taxes.

What percentage of the population are tax payers?

"the public has been sufficiently propagandized to the point where even the truth can't get into their little pea sized thinkewrators"

That is you Bobert. One only has to look at your Bobert "facts" to figure that out.

You are a firm believer in the "Clinton Surplus" Myth. You cannot explain why the National debt went up every year of the claimed surpluses except to call the Treasury Dept, headed by Tim Geithner a right wing mythology site.

To his credit, Obama has recently changed the shady accounting rules that allowed people to claim a surplus where there was a deficit.

Unlike you Bobert, I am going to back up my words with something other than personal attacks:

The Obama Administration also made four significant accounting changes, to more accurately report the total spending by the Federal government. These changes would make the debt over ten years look $2.7 trillion larger, but that debt was always there. It was just hidden.

Understanding on-budget and off-budget deficits

Social Security payroll taxes and benefit payments, along with the net balance of the U.S. Postal Service are considered "off-budget." Administrative costs of the Social Security Administration (SSA), however, are classified as "on-budget." The total federal deficit is the sum of the on-budget deficit (or surplus) and the off-budget deficit (or surplus). Since FY1960, the federal government has run on-budget deficits except for FY1999 and FY2000, and total federal deficits except in FY1969 and FY1998-FY2001. In large part because of Social Security surpluses, the total federal budget deficit is smaller than the on-budget deficit.

The surplus of Social Security payroll taxes over benefit payments is invested in special Treasury securities held by the Social Security Trust Fund. Social Security and other federal trust funds are part of the "intergovernmental debt." The total federal debt is divided into "intergovernmental debt" and "debt held by the public."

For example, in FY2008 an off-budget surplus of $183 billion reduced the on-budget deficit of $642 billion, resulting in a total federal deficit of $459 billion. Media often report the latter figure. The national debt increased by $1,017 billion between the end of FY2007 and the end of FY2008.

These on-budget and off-budget items essentially amount to accounting gimmicks and schemes. In reality, what really matters is how much money comes in and how much money goes out. The federal government publishes the total debt owed (public and intragovernmental holdings) at the end of each fiscal year and since FY1957, the amount of debt held by the federal government has increased every single year.

According to the CBO, the U.S. last had a surplus during fiscal year (FY) 2001. From FY2001 to FY2009, spending increased by 6.5% of GDP (from 18.2% of GDP to 24.7%) while taxes declined by 4.7% of GDP (from 19.5% of GDP to 14.8%). The drivers of the expense increases (expressed as % of GDP) are Medicare & Medicaid (1.7%), Defense (1.6%), Income Security such as unemployment benefits and food stamps (1.4%), Social Security (0.6%) and all other categories (1.2%). The drivers of tax reductions are individual income taxes (-3.3%), payroll taxes (-0.5%), corporate income taxes (-0.5%) and other (-0.4%). The 2009 spending level is the highest relative to GDP in 40 years, while the tax receipts are the lowest relative to GDP in 40 years. The next highest spending year was 1985 (22.8%) while the next lowest tax year was 2004 (16.1%)

The U.S. budget situation has deteriorated significantly since 2001, when the Congressional Budget Office (CBO) forecast average annual surpluses of approximately $850 billion from 2009-2012. The average deficit forecast in each of those years as of June 2009 was approximately $1,215 billion. The New York Times analyzed this roughly $2 trillion "swing," separating the causes into four major categories along with their share:

    * Recessions or the business cycle (37%);
    * Policies enacted by President Bush (33%);
    * Policies enacted by President Bush and supported or extended by President Obama (20%); and
    * New policies from President Obama (10%).

CBO data is based only on current law, so policy proposals that have yet to be made law are not included in their analysis. The article concluded that President Obama's decisions accounted for only a "sliver" of the deterioration, but that he "...does not have a realistic plan for reducing the deficit..." Presidents have no Constitutional authority to levy taxes or spend money, as this responsibility resides with the Congress, although a President's priorities influence Congressional action.

The CBO reported in October 2009 reasons for the difference between the 2008 and 2009 deficits, which were approximately $460 billion and $1,410 billion, respectively. Key categories of changes included: tax receipt declines of $320 billion due to the effects of the recession and another $100 billion due to tax cuts in the stimulus bill (the American Recovery and Reinvestment Act or ARRA); $245 billion for the Troubled Asset Relief Program (TARP) and other bailout efforts; $100 billion in additional spending for ARRA; and another $185 billion due to increases in primary budget categories such as Medicare, Medicaid, unemployment insurance, Social Security, and Defense - including the war effort in Afghanistan and Iraq. This was the highest budget deficit relative to GDP (9.9%) since 1945. The national debt increased by $1.9 trillion during FY2009, versus the $1.0 trillion increase during 2008.

The Obama Administration also made four significant accounting changes, to more accurately report the total spending by the Federal government. The four changes were:

1) account for the Wars in Iraq and Afghanistan ("overseas military contingencies") in the budget rather than through the use of "emergency" supplemental spending bills;

2) assume the Alternative Minimum Tax will be indexed for inflation;

3) account for the full costs of Medicare reimbursements; and

4) anticipate the inevitable expenditures for natural disaster relief. These changes would make the debt over ten years look $2.7 trillion larger, but that debt was always there. It was just hidden.