CBO: Hard choices ahead on debt
June 5th, 2012
01:32 PM ET
3 years ago

CBO: Hard choices ahead on debt

New York (CNNMoney) - The Congressional Budget Office on Tuesday painted a stark picture of the country's fiscal future, which will be determined in part by tough choices lawmakers face in the coming months on the federal budget.

The CBO, the nonpartisan official beancounter in Washington, painted two scenarios for Congress.

FULL STORY

Filed under: Budget • Congressional Budget Office • Taxes
soundoff (24 Responses)
  1. Obama 2012 - BEND Forward America, take another 4 long years of FAILURE

    In a separate report last month, the CBO estimated that allowing fiscal cliff policies to take effect all at once would likely cause a recession in 2013.
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    Hey CBO... bad news is that we are already likely heading into the Obama recession. Obama has set this country up for a massive disaster in January. But that is what Democrats do, lay giant IEDs in the economic path of this country, then blame others when they explode and take down the economy.

    June 5, 2012 01:41 pm at 1:41 pm |
  2. Four and The Door

    In other words, the federal government is not going to be successful trying to tax our way out of this situation. We have no choice except to grow the economy. We have one presidential candidate who knows how to make that happen.

    Romney 2012

    June 5, 2012 01:45 pm at 1:45 pm |
  3. Dean

    Only one logical choice...remove Obama from the White House.

    June 5, 2012 01:47 pm at 1:47 pm |
  4. Bill form GA

    Amazingly enough, just 12 years ago,during the Bush,Gore debates, the talk was of CONTINUING to pay down the debt and fix Social Security and Medicare.

    June 5, 2012 01:50 pm at 1:50 pm |
  5. California

    It is funny and very entertaining watching liberals make up their own reality.

    June 5, 2012 01:51 pm at 1:51 pm |
  6. Malory Archer

    As I stated on an earlier thread: Bring ALL troops home from Iraq & Afghanistan and drive a stake through the heart of the beast better known as the military industrial complex. End ALL corporate welfare and force Conglomo & TooBigToFail, Inc to stand on their own two feet. Impose punitive tarriffs on the imports of goods produced by American businesses who outsource the work to slave labor nations.

    Once again, I've solved the debt crisis! Now it's time for lunch!

    June 5, 2012 01:55 pm at 1:55 pm |
  7. Cody

    The tax cuts expiring and spending cuts will trim $7 trillion over the next 10 years, I think that is a better debt reduction package than anything we can expect from Congress so I say bring it on!

    The CBO is not accounting for many variables that would positively impact the economy after this level of debt reduction. We might even get our AAA+ rating back and even lower interest rates.

    June 5, 2012 02:01 pm at 2:01 pm |
  8. PJ/TX

    "...high levels of debt not solely due to the recent surge in spending and drop in revenues that resulted from the
    2008 financial crisis." "...also reflects an imbalance between spending and revenues that PREDATED the
    recession".
    So, since we were doing good during the Clinton years, and President Obama took office in 2009, who was
    in the White House between 2000-2008. Oh right, that would be Bush/Cheney. And you want to repeat
    the "Bush recession" starting years? That's exactly what Romney has planned (or should I say
    Norquist/Ryan), because the only things these two want is someone to "sign the papers".
    Try again.

    June 5, 2012 02:13 pm at 2:13 pm |
  9. California

    Democrats are obviously "to big to jail".

    June 5, 2012 02:20 pm at 2:20 pm |
  10. tibs

    We did not have a good economy under clinton. We had a bubble economy. It was an illusion that burst as bush entered office. Of course, instead of allowing the recession WHICH IS THE CURE, the administration along with greenspan prevented it through the creation of a new bubble – what would become the housing bubble.

    Massive cuts in the size and scope of government along with a serious look at our hideously dishonest and immoral monetary policy is the right course of action. It will be incredibly painful for most americans for several years as the economy restructures and people begin to once again SAVE. But we will emerge on the other side with a sound economy and a bright future.

    Stimulus is a joke. If you really want some stimulus how about giving out freshly created money to the people instead of the financial sector. What an absolute joke.

    June 5, 2012 02:32 pm at 2:32 pm |
  11. Governor 47th in Job Growth

    "The growing debt also reflects an imbalance between spending and revenues that predated the recession," the agency said.

    Right on the mark. When the gang of "deficits don't matter" ran it up then pointed to the half-white occupant of 1600 Pennsylvania Ave and started crying about deficits. Wars and tax cuts (as if wars don't cost MONEY in addition to emotional hardships on other people's families) not to mention part D. GOTP likes to pretend that that didn't happen on their watch. Nice try.

    June 5, 2012 02:54 pm at 2:54 pm |
  12. Claudia, Houston, Tx

    I just love all the negativity about Obama because it means one thing to me, the Republicans will make those Bush tax cuts permanent to add to my billions.

    June 5, 2012 03:00 pm at 3:00 pm |
  13. Silence DoGood

    @Malory Archer "drive a stake through the heart of the beast better known as the military industrial complex"

    I agree. And as someone who voted for Obama, I resent that he promoted himself as anti-war and even won the Peace Prize. And now operating killer drones, sending military to Libya (save the OIL) and holding up Bin Laden's head, it is clear he does not share our view.

    Please vote 3rd party next time!

    June 5, 2012 03:05 pm at 3:05 pm |
  14. SilverHair

    Really, the CBO does the becking of anyone wanting to make a point. Right now the majority in the House gets what looks good to them – and they get it. Same with the Senate. Diverging views. Guess who pays their salary? Don't bite the hand that feeds you.

    June 5, 2012 03:09 pm at 3:09 pm |
  15. Nuihc

    "As I stated on an earlier thread: Bring ALL troops home from Iraq & Afghanistan and drive a stake through the heart of the beast better known as the military industrial complex. End ALL corporate welfare and force Conglomo & TooBigToFail, Inc to stand on their own two feet. Impose punitive tarriffs on the imports of goods produced by American businesses who outsource the work to slave labor nations.

    Once again, I've solved the debt crisis! Now it's time for lunch!"
    ------------------------------------------
    And there is the naiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

    June 5, 2012 03:23 pm at 3:23 pm |
  16. Nuihc

    As I stated on an earlier thread: Bring ALL troops home from Iraq & Afghanistan and drive a stake through the heart of the beast better known as the military industrial complex. End ALL corporate welfare and force Conglomo & TooBigToFail, Inc to stand on their own two feet. Impose punitive tarriffs on the imports of goods produced by American businesses who outsource the work to slave labor nations.

    Once again, I've solved the debt crisis! Now it's time for lunch!
    -------------------------------------------
    What I meant to say before the stuck key on my keyboard,,,And there is the niavety of the left. How many people do you think the "beast betterter known as the military industrial complex" employs, plus all the soldiers that will come back looking for a job (though I agree, bring them home after the job is done)? What do you think it will do to the unemployment rate? The last study I saw was the rate would jump to close to 20%. Other than that, I sort of agree with the rest of what was said. GM being "to big to fail," was nonsense.

    June 5, 2012 03:29 pm at 3:29 pm |
  17. Obama 2012 - BEND Forward America, take another 4 long years of FAILURE

    Governor 47th in Job Growth
    "The growing debt also reflects an imbalance between spending and revenues that predated the recession," the agency said.
    Right on the mark.
    ======================================================================================
    Yearly deficits of $100-200 BILLION are NOT the same as Obama's $1.3 TRILLION YEARLY deficits!. You don't understand numbers very well. Ginormous deficits VERY BAD, small deficits not so bad.

    Wars and tax cuts (as if wars don't cost MONEY in addition to emotional hardships on other people's families) not to mention part D. GOTP likes to pretend that that didn't happen on their watch. Nice try
    ====================================================================================
    Democrats voted FOR the wars and voted FOR part D. Leftist Democrats like to pretend that didn't happen. Nice try.

    June 5, 2012 03:35 pm at 3:35 pm |
  18. Gurgyl

    Do you think Mitt will put Crown on you head???? HE SELLS USA TO CHINA!!! True.

    June 5, 2012 03:41 pm at 3:41 pm |
  19. Malory Archer

    Sorry Silence, but this election is far too important to throw to the fascists by voting for a third party. Maybe I'll do that in 2016.

    June 5, 2012 03:52 pm at 3:52 pm |
  20. Malory Archer

    What I meant to say before the stuck key on my keyboard,,,And there is the niavety of the left. How many people do you think the "beast betterter known as the military industrial complex" employs, plus all the soldiers that will come back looking for a job (though I agree, bring them home after the job is done)? What do you think it will do to the unemployment rate? The last study I saw was the rate would jump to close to 20%. Other than that, I sort of agree with the rest of what was said. GM being "to big to fail," was nonsense.

    +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

    Basing our economy on war and weapons is narrowminded and wrong on so many levels. We have no natural resources or anything that anyone else in the world would want. Being a country that produces nothing but weapons and war makes us nothing more than horrible monsters. All that $$$ that goes to weapons manufactures would be much better spent on the positive. Our military personnel are very good at pretty much everything. If we put them to work rebuilding our infrastructure, teaching our children and healing our sick & injured are just a few things would go a long way towards reemploying our military.

    June 5, 2012 03:58 pm at 3:58 pm |
  21. Sniffit

    ""The growing debt also reflects an imbalance between spending and revenues that predated the recession," the agency said.
    Right on the mark.
    ======================================================================================
    Yearly deficits of $100-200 BILLION are NOT the same as Obama's $1.3 TRILLION YEARLY deficits!. You don't understand numbers very well. Ginormous deficits VERY BAD, small deficits not so bad."

    Busgh created trilloion dollar deficits and hid them by keeping the wars off the books, junior. Cut the crap and grow up,. What you apparently don't understand is that spending under Obama for federal, state AND local governments has all fallen more than under any president in the past 50 years. YOU don't understand the numbers. YOU don't understand where the deficits and debt came from. YOU are lying in order to gloss over it in hopes people don't catch on to the MATH underlying it all and simply go with your superficial idiocy that merely looks at the existing number and who is in office and says "oh, well, correlation means causation." Cmoplete and utter nosnense from you and the entire right wing. Mittens will worsen it to the tune of $3T...and that's MATH as well, champ.

    June 5, 2012 04:01 pm at 4:01 pm |
  22. Myviewis

    I have yet to see anyone explain based on Accounting and Finance how the Bush Tax Cuts are not good for small businesses and how it has caused unemployment.

    June 5, 2012 04:02 pm at 4:02 pm |
  23. Sniffit

    "Wars and tax cuts (as if wars don't cost MONEY in addition to emotional hardships on other people's families) not to mention part D. GOTP likes to pretend that that didn't happen on their watch. Nice try
    ====================================================================================
    Democrats voted FOR the wars and voted FOR part D. Leftist Democrats like to pretend that didn't happen. Nice try."

    ANd people voted for them because BUSH LIED TO GET THEM TO DO SO. Tinfoil hatted right wing shill machine talking ponit regurgitators like to pretend THAT didn't happen. Poor try.

    June 5, 2012 04:02 pm at 4:02 pm |
  24. g

    small buisness need a middle class with spending power–not billionares sitting in there mansions on the hill

    June 5, 2012 04:15 pm at 4:15 pm |