Three Damaging CBO Reports in One Week
The Congressional Budget Office (CBO) released three reports this week that form a terrifying picture for the future of our country: one about how much more federal employees are compensated over their private-sector counterparts; another about how healthcare spending will double over the next ten years; and, the third about the projected $1.08 trillion deficit and 8.9% unemployment by the end of 2012.
The picture isn’t pretty.
By the year 2022, spending on Medicare, Medicaid and other federal healthcare programs will reach $1.8 trillion. That’s 7% of the entire economy! And that’s assuming those programs haven’t gone bankrupt by then.
This year’s projected $1.08 trillion deficit is no laughing matter, either. That means that for each of the years that President Obama has been in office, we’ve had $1 trillion+ deficits. Before his Presidency, the highest federal deficit was $458 billion in 2008. Now, President Obama and the left will try to blame President Bush, but remember, the CBO also projects trillion-dollar-a-year deficits until 2017. How is it Bush’s fault that trillion dollar deficits continued after he was fully out of office?
Well, the Associated Press tries their darndest to explain that. In a spin article titled “Federal budget deficit to dip to $1.1T, CBO says” the AP tries to blame the Bush tax cuts for the current and future deficits:
“The Congressional Budget Office report also says that annual deficits will remain in the $1 trillion range for the next several years if Bush-era tax cuts slated to expire in December are extended, as commonly assumed – and if Congress is unable to live within the tight “caps” the lawmakers themselves placed on agency budgets last year.”
Notice how living with its means is at the end of that paragraph, while most is devoted to the belief that the Bush tax cuts, 6 years after being passed, suddenly led to trillion dollar deficits. The truth is, as we’ve explained before, the tax cuts led to higher revenues. Tax receipts reached an all-time high in 2007, and had increased substantially after the Bush tax cuts were fully implemented in 2003 and the economy proceeded to grow.
The problem here is not the Bush tax cuts. The reason the economy isn’t growing is because the government spends beyond its means, and then threatens taxpayers with higher taxes to pay for it (also, threats of more regulation).
With news that federal workers – whose salaries are paid for by the taxpayers – get paid far more than their private-sector counterparts, it’s very easy to see where some of that spending can be cut. The federal government, who bungles pretty much everything it touches, should not be getting paid more than the private sector, who pays their bills. The Hill reports the difference:
“The CBO found that the advantage federal workers enjoy varies by educational level. For those with only a high-school degree, workers earned 21 percent more and were given benefits worth 72 percent more than in the private sector.
“For college graduates, wages were about the same but benefits were 46 percent better in the government.
“Meanwhile for advanced degree holders, wages were 23 percent less than in the private sector and benefits were about the same.”
President Obama is (quietly) trying to increase the pay of federal workers by .5%. We have trillion dollar deficits, federal workers get paid more than workers in the private sector, and now the President is asking to increase that gap?
This coming from the man who promised to cut the federal deficit in half by the end of his first term…