On CNN's American Morning today, business correspondent Christine Romans explained to anchor Kiran Chetry why there are new estimates showing the Federal deficit to be much worse than originally projected by the Obama administration:
ROMANS: Why? OK, this is really -- it's a complicated problem with a very simple analysis. It's how much money the government is taking in and how much money is going out.Let's look at how much is going out. Government spending has skyrocketed as you all know over the past couple of years, up 21 percent in the first ten months of this year. Unemployment benefits, health care, bailout programs. We are spending more money than we take in. We are spending gobs of money constantly on lots of different programs to try to get this economy out of the mess it's in. At the same time, revenue is plunging.
The money that's coming in to the Treasury Department is plunging down 17 months in the first ten months, or 17 percent, rather, in the first ten months, declining income and peril taxes. People are out of work. We're not making as much money.
CHETRY: Right.
ROMANS: That's going down. Non-wage income. All other kinds of income people have down sharply. And then that stimulus tax credit -- that has to come from somewhere. Right? Everyone is getting this big tax break, that means less money going in.
Story Continues Below Ad ↓So this is the situation. Money is not coming in like it used to, and money is going out much, much, more quickly than it used to. And the bottom line is that's red ink, red ink, red ink, red ink for ten years.
Giving credit where it's due, Romans accurately noted that Obama's administration has routinely been "overly optimistic" in budget projections. But what about "this big tax break" everyone is getting?
On February 22 of this year, USA Today carried the Associated Press article "Obama: Stimulus tax cuts will be felt by April 1." According to the AP:
Most workers are to see about a $13 per week increase in their take-home pay. In 2010, the credit would be about $7.70 a week, if it is spread over the entire year.
Barack Obama and his Democratic Congress did not deliver a big tax break to everyone. However, Romans's observation that he is "spending gobs of money. . . to try to get this economy out of the mess it's in" is correct. It's Obama's profligate expenditures that are undeniably the principal cause of huge deficits, not illusory big tax breaks.
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Big Tax Cut???
August 25, 2009 - 12:55 ET by HoosierEmYeah, that $13.00 per week is going really far.
She's a Vapid Four Letter Word
August 25, 2009 - 15:02 ET by farstar99Just like all of her colleagues.
Is the bimbo really that
August 25, 2009 - 13:05 ET by MikeBIs the bimbo really that stupid? Tax rates went up, tax revenues went down. Higher tax rates punish economic activity, therefore there is less economic activity because people want to keep as much as possible of what they have earned, whether by their labor, or by their risking their savings by investing. Tax revenues went down, spending went out of sight, and of course the deficit went orbit high. It doesn't take a rocket scientist to figure this out, as it has been demonstrated time and time again. Only a committed socialist (or, rather a socialist that should be committed) would not see this. Sheesh!
"A communist is someone who reads Marx. An anti-communist is someone who understands Marx." Ronald Reagan
This moron is a business
August 25, 2009 - 13:11 ET by mattmThis moron is a business correspondent? Where do you start with idiots like this? Declining revenues are the result of an economy weakened by tax increases and/or spending increases. The result of tax cuts is stronger economic activity and MORE revenues to the treasury without tax increases.
But since the colleges preach the LIE that "Reaganomics" doesn't work, it's not surprising that this brainwashed dope wouldn't know anything.
In order to define a "tax
August 25, 2009 - 13:19 ET by robert108In order to define a "tax break", you need to compare it to some standard. As yet in this country, we have no standard, set rate of taxation, so the concept of a "break" is entirely false.
The lefties always assume that all money belongs to the govt, and that the govt is giving us a "break" by allowing us to keep some of what we earn.
Ode to Obama
August 25, 2009 - 13:17 ET by WesenPundits predicted that the economy would have self corrected this spring if left alone... with tampering they said it would happen this fall. Look at the headlines, the Fed is printing money and we are headed for hyper-inflation. I am moving to get my house in order for we are headed toward the whirlwind.
Bush's fault
August 25, 2009 - 17:59 ET by ThisnThatYou got it all wrong. It's Bush's fault. Obama has no blame, as explained here: Though the Obama administration was at the forefront of a $787 billion economic stimulus package and is pushing passage of a costly health care reform package, the administration said in a summary that the "failure" of past administrations to follow pay-as-you-go rules is causing much of the fiscal mess.
The summary claimed $5 trillion of the long-term deficit is attributable to the Bush administration's "failure" to follow that standard.
The rest of the deficit is due in large part to the recession, the administration said.
See? No blame obama. He perfect. Bad Bush. Good obama. Bad, bad, Bush. Obama my hero. Wonderful obama hero-type-guy. Bad, bad, bad, Bush. Is very bad to be Bush.
___________________________________
"Tax the rich" is a basically unstable way of governing - The NYT
Re CNN
August 25, 2009 - 13:22 ET by slickwillie2001Don't expect Chetry to figure this out either, I believe Fox News got rid of her a couple of years ago because she is so dumb.
I wonder if the obituary departments at the newspapers and networks that have pre-written obituaries for celebrities and politicians ready-to-go might have one in the works for CNN?
The only problem ...
August 25, 2009 - 13:28 ET by SentryDanThe only problem with the supposed tax break is that there wasn't one. What really happened what that the amount withheld from one's pay was reduced which increased the amount that a person took home.
Here is the rub. When tax time comes next April, people will find that there tax liability didn't go down. In other words, the amount of taxes withheld will be less but the amount the individual will be taxed on will not have gone down (if they have the same deductions as this past year.). That means that the taxpayer will either have to pay more in taxes or get less of a refund.
Ah, so much for obama big tax break. I feel sorry for the people that were taken in by this man. BTW, obama is one of the most dishonest men I have seen in my 65 years on this planet.
Remember folks, Freedom isn't Free. It was bought with the blood and sacrifice of the men and women who are serving and who have served in the U.S. Armed Forces.
For those who fought for it, Freedom has a flavor that the protected will never know.
Also remember folks, that the way to SUPPORT THE TROOPS is to support their mission. Anyone who says that they support the troops but don't support their mission is lying about supporting the troops. And if you want to know, yes I do have a dog in the fight, he is a United States Marine.
Feeling sorry
August 25, 2009 - 13:33 ET by Mike BatesI feel sorry for the people that were taken in by this man.
I feel sorrier for those who weren't, yet must still suffer the consequences.
Mike, I agree with you ...
August 25, 2009 - 14:17 ET by SentryDanMike, I agree with you that those of us who weren't taken in by "the one" obama are having to suffer through his madness.
What I was referring to was that those of us who saw through the obama scam of a tax break have taken steps to prevent having to pay a much larger sum than we would otherwise have paid come tax time, while those who were taken in by the scammer-in-chief will pay for believing in him.
Yes, they were fools, but sometimes you do tend to feel just a little sorry for them and that feeling doesn't last very long.
Remember folks, Freedom isn't Free. It was bought with the blood and sacrifice of the men and women who are serving and who have served in the U.S. Armed Forces.
For those who fought for it, Freedom has a flavor that the protected will never know.
Also remember folks, that the way to SUPPORT THE TROOPS is to support their mission. Anyone who says that they support the troops but don't support their mission is lying about supporting the troops. And if you want to know, yes I do have a dog in the fight, he is a United States Marine.
Hold media accountable
August 25, 2009 - 13:36 ET by MaximusBraveheartThese huckster media (and many "educators") are selling our country out. IF they tried to tell the truth in things (vs. liberal spin) and educate the people regard actual true factual information maybe we could move forward since the public would have a basic background on economic reality and our constitution. NO, now we have to fight socialism since they are contributing to it. It is truely treason to create division based on lies. M-B
Ode to Obama II
August 25, 2009 - 13:31 ET by Mike BatesIt's no coincidence that much of the world - countries that didn't try to spend their way out of financial troubles - are pulling out of recession while the US problems linger on. And will probably worsen as the printing presses crank up.
newspeak
August 25, 2009 - 13:36 ET by candanceThe new word for "welfare check" is "tax credit." Got it.
The new word for "welfare check" is "tax credit." Got it.
August 25, 2009 - 13:38 ET by MaximusBraveheartYou ARE right. I think that IS what she is talking about. She also considers the cash for clunkers the same thing too. Paying $3500-4500 for a $500-$1000 car. Leave it to the government to overpay by THAT MUCH! M-B
Re C4C
August 25, 2009 - 14:07 ET by slickwillie2001I still haven't seen a good answer, yes or no, as to whether the C4C bonuses will be considered taxable income for next April. I wonder if the Bamster has even thought of that yet. If someone that's in a higher tax bracket considers the income tax on the subsidy, it might have been better to sell the clunker for a few dollars less as a used car.
taxable income
August 25, 2009 - 14:11 ET by Mike BatesOne thing we can be fairly sure of is Tim Geithner will find a way - in TurboTax, natch - to not pay.
continue the thought
August 25, 2009 - 16:33 ET by ptsonThe new words are "income redistribution." The old ones were "reparations for slavery." Either concept exceeds the economic ability of the news reader. Actually, simple addition and subtraction seems to be a bit confusing for her.
Christine Romans is way past stupid
August 25, 2009 - 13:46 ET by R D HelmShe is now firmly entrenched in stoopid.
It's people like her that are the reason the Barack Hussein Obama's of the world keep getting elected over and over.
-Dave
WOW....
August 25, 2009 - 14:14 ET by Radar_OneIs this the BEST CNN can do now??? I mean she's eyecandy...but she's a total dolt when it comes to facts... the CBO said 10 Tril. and Duh One said...noo thats not a close estimate, now he's backpedaling. SO, if I am to believe CNN its ALL going to be ok...now that Duh One is here to fix everything...how about stopping this healthcare crap...and the cap and tax crap and EVERY other spending bill stimulus bill and try to actually limit government.
If you like Cash for Clunkers you'll LOVE ObamaCare!
Barack Obama= Half Honkey...ALL Donkey
eye candy
August 25, 2009 - 14:19 ET by Mike BatesI mean she's eyecandy...
Unlike anchorette Kiran Chetry, another Mensa member.
Hey!
August 25, 2009 - 15:26 ET by FeynmanFanWhat's wrong with Mensa members?
"I support the President but not his policies" - Blonde
What's wrong with Mensa members
August 25, 2009 - 18:24 ET by Mike BatesNot a thing. Just suggesting Kiran may not be on the membership list.
Romans your stupidity is legion
August 25, 2009 - 14:15 ET by east tennessee johnI can't believe this person is a "business" correspondent. She couldn't describe the economics of a lemonade stand, in fact since he's never run anything prior to his election, neither could BO.
...
August 25, 2009 - 14:23 ET by Jack Bauer...
The Life of Christine
August 25, 2009 - 14:22 ET by Jack BauerWhat have the Romans ever done for us?
We spend more on bailouts
August 25, 2009 - 15:22 ET by ckc1227We spend more on bailouts than any other industrialized nation, yet get worse results. Time for government to take over the bailouts.
Oh, wait...
This is where these people
August 25, 2009 - 15:31 ET by Dan The Man 2This is where these people get their start. A budding news reader.
budding news reader
August 25, 2009 - 18:23 ET by Mike BatesI think she's a lot sharper than most of 'em. Particularly liked the use of "U.S. Americans."
They lie, we cry, they get
August 25, 2009 - 21:13 ET by RR GOPThey lie, we cry, they get paid.
Even if the Great Congressional Democrat A$$-kicking of 2010 actually does take place, these types will still be out their yacking away, and we'll be right back where we are now in 10 years or so as sheeple once again seek the easy Federally-funded/managed life.
Anyone ever seen Wall-E?
One of the 34% who thinks George W. Bush was a great President. One of the 86% who wants to bring back the stock and pillory.