Thread: October budget deficit hits record of $237.2B

October budget deficit hits record of $237.2B

By MARTIN CRUTSINGER, AP Economics Writer
Friday, November 14, 2008

(11-14) 03:33 PST WASHINGTON, (AP) --


The federal government began the new budget year with a record deficit of $237.2 billion, reflecting the billions of dollars the government has started to pay out to rescue the financial system.


October budget deficit hits record of $237.2B

Eventually federal income tax rates are going to have to rise, along with the expiration of the 2003 Bush tax cuts.

Originally Posted by Colin

Eventually federal income tax rates are going to have to rise, along with the expiration of the 2003 Bush tax cuts.

You got that right!! but if someone does not turn off the spigot there is not enough money in taxes to keep pace with the spending. We are in for one hell of ride as a nation.

Originally Posted by anonnymous

You got that right!! but if someone does not turn off the spigot there is not enough money in taxes to keep pace with the spending. We are in for one hell of ride as a nation.

It's entirely feasible for a fiscally responsible government to begin reducing the deficit and eventually start paying down the debt within the next term. Tax reform and increases, budget cuts as well as eliminating the Bush tax are all likely solutions. People forget that 8 years ago the US had a federal surplus, 8 years of fiscal mismanagement brought on by a rubber stamp Congress, a spender President and two wars can be reversed, its just going to take some time.

I am working on the assumption that the next administration will be fiscally responsible, its the best we can hope for.

It's okay guys! I got it! Who should I make the check out to?

Obama doesnt even talk about the defecit and debt. He only talks about wanting to print more money which will destroy the currency and cause hyperinflation.

Originally Posted by Colin

Eventually federal income tax rates are going to have to rise, along with the expiration of the 2003 Bush tax cuts.

Just end the Iraq war, and cut spending in general and that won't be necessary.

Originally Posted by Colin

It's entirely feasible for a fiscally responsible government to begin reducing the deficit and eventually start paying down the debt within the next term. Tax reform and increases, budget cuts as well as eliminating the Bush tax are all likely solutions. People forget that 8 years ago the US had a federal surplus, 8 years of fiscal mismanagement brought on by a rubber stamp Congress, a spender President and two wars can be reversed, its just going to take some time.

I am working on the assumption that the next administration will be fiscally responsible, its the best we can hope for.

Well of course but the government never had a surplus 8 years ago. That was a lie that most people still believe. Our obligations to entitlements was never brought forward in this so called surplus discussion. Right now it is close to 72 trillion and counting.

Originally Posted by Goldwater

It's okay guys! I got it! Who should I make the check out to?

Screw the government!!! just make it out to me and I PROMISE to use it wisely. Oh! and thanks.

Originally Posted by anonnymous

Well of course but the government never had a surplus 8 years ago. That was a lie that most people still believe. Our obligations to entitlements was never brought forward in this so called surplus discussion. Right now it is close to 72 trillion and counting.

Those are unfunded future obligations, they are separate from current budgetary realities like the federal debt or annual deficit. By including them you are including future projections over the next 70 years in a contemporary analysis of the government's fiscal responsibilities, assuming a policy standstill for the next several decades without reform or substantial budgetary shifts. Undoubtedly unfunded future entitlements in the vein of social security and Medicare are very real and must be on the table for discussion to be addressed, but they cannot be included in statements regarding the US's federal debt as of 2008.