Federal deficit soaring, but McCain, Obama offer no answers

Just weeks before the government's fiscal year ends Sept. 30, the nonpartisan Congressional Budget Office on Tuesday projected a near-record federal budget deficit of $407 billion, sharply higher than White House projections six weeks ago and more than double last year's figure.

Mammoth federal-budget deficits feed inflation, make America dependent on foreign lenders, cost taxpayers hundreds of billions of dollars in interest payments on the growing national debt and drain capital savings from more productive investments.

The widening gap between what the government spends and the revenue it brings in is sure to weigh on the next president and impede his efforts to spend on new or larger programs or to cut taxes.

Yet John McCain and Barack Obama show few signs that they're ready to take tough steps to curb deficits, according to budget analysts.

"I don't think either candidate is treating the deficit, or the debt, seriously. And I don't see any proposals from either one that would make the situation any better," said Robert Bixby, the executive director of the Concord Coalition, a bipartisan budget-watchdog organization.

http://www.kansascity.com/445/story/789397.html

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There will need to be deep cuts across the board

And so far, Obama's the only one I've heard that has actually come up with ideas to help. 1 - start triming the unnecessary jobs in govt from the top to the bottom rungs of govt - get rid of the people getting rich off govt jobs who do nothing.
2 - get out of Iraq - money saved
3 - eliminate the tax cuts for the rich. McCain won't do that. With McCain, the top 5 percent (wealthiest) people will get tax cuts, the rest of us, won't. Obama it's the opposite.

Its not entirely true to say that McCain isn't cutting taxes for anyone but the top 5%.

According to the published comparisons, the McCain plan would cut taxes at least somewhat for all brackets. And McCain's proposed plan is actually better for 40% of taxpayers than Obama's plan.

And frankly, I don't see how Obama is going to manage cutting the tax burden of people $18K and lower by $567, considering that most people in that income bracket end up not paying any income tax to begin with!

It is correct, however, that according to published reports the Obama plan would be better for people in the $30-$60K-ish range.

 

And right into Afghanistan, more money spent and spent and spent.

The Soviets fought for ten years in the country and went home, after many life's were lost and tens of billions spent.

We are doing nearly the same thing.

Business Week gives this one to Obama and Business Week hardly a liberal magazine by any strech of the imagination.

Obama vs. McCain: Taxing and Spending

So where does the reality lie? According to a new analysis by the nonpartisan Tax Policy Center, a joint venture between the Urban Institute and the Brookings Institution, two Washington think tanks, this round goes to Obama. The TPC took a look at the various tax proposals put forth by the two candidates and estimated that Obama's plan would lead to a boost in aftertax income for all but the highest earners, while taking a smaller bite out of government tax revenues than would McCain's plans.

It's a good read... http://www.businessweek.com/bwdaily/dnflash/content/jun2008/db20080611_220050.htm

 

McCainObamaTaxPlan

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