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CBO estimates Obama's 2013 budget plan would severely hit economic growth
The Hill ^ | 04/20/2012 | Erik Wasson

Posted on 04/21/2012 6:52:34 AM PDT by SeekAndFind

The nonpartisan Congressional Budget Office said Friday that President Obama’s 2013 budget will hurt the economy in the long term, arguing the larger deficits it would produce would reduce the amount of capital available to businesses.

After five years, the CBO says, the Obama proposals would reduce economic output by between 0.5 percent and 2.2 percent.

Larger deficits caused by the budget would cause the government to issue more bonds, sucking up private capital to finance its debts and thereby reducing the funds businesses could use to expand and hire, the CBO said. An increased tax on capital gains included in the president's plan would also tend to reduce private capital, it says.

The 2013 Obama budget proposes continuing the Bush tax rates for the middle class and enacting elements of a short-term Jobs Act stimulus. In the near term, actions such as these could increase growth by as much as 1.4 percent, CBO says.

The new CBO report complements a March estimate that Obama’s budget would add $3.5 trillion to deficits over 10 years compared to current law. That report did not try to capture any effects on economic growth.

The White House, using a different baseline than CBO, has claimed its budget would reduce deficits by $3.2 trillion over 10 years.

(Excerpt) Read more at thehill.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: budget; cbo; obama

1 posted on 04/21/2012 6:52:45 AM PDT by SeekAndFind
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To: SeekAndFind
"The nonpartisan Congressional Budget Office said Friday that President Obama’s 2013 budget will hurt the economy in the long term, arguing the larger deficits it would produce would reduce the amount of capital available to businesses."

Isn't that the point of all of this?

2 posted on 04/21/2012 7:12:04 AM PDT by Baynative (Please check this out - http://www.youtube.com/watch?v=fFIcZkEzc8I)
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To: Baynative

Bingo...right to the heart of the matter. The deficits are intentional and designed to destroy us a la Greece, Spain, et al.

Big question: Where is the money going? How much is being siphoned off to private offshore bank accounts?


3 posted on 04/21/2012 8:44:16 AM PDT by ProtectOurFreedom
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To: ProtectOurFreedom
I've written to Issa and other congressional oversight committee members to urge them to offer public disclosure of Solyndra's books. We deserve to know where the money went. I think it goes without saying that the same should apply to all companies who got stimulus money.

It reflects on one of Obama's most famous lies about going through the budget "line item by line item" to make sure the American people know where their money is being spent.

4 posted on 04/21/2012 9:33:52 AM PDT by Baynative (Please check this out - http://www.youtube.com/watch?v=fFIcZkEzc8I)
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To: SeekAndFind

Obama’s budget? What budget? There hasn’t been a budget for 3 years.


5 posted on 04/21/2012 11:40:36 AM PDT by hattend (Firearms and ammunition...the only growing industries under the Obama regime.)
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To: SeekAndFind
The new CBO report complements a March estimate that Obama’s budget would add $3.5 trillion to deficits over 10 years compared to current law. That report did not try to capture any effects on economic growth.

The White House, using a different baseline than CBO, has claimed its budget would reduce deficits by $3.2 trillion over 10 years.

A 6.7 TRILLION dollar difference between them?

It's only a rounding error.

We have lost control of our government.

6 posted on 04/21/2012 11:43:59 AM PDT by hattend (Firearms and ammunition...the only growing industries under the Obama regime.)
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