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Subscribe to RSSFrom msnbc.com's Tom Curry: With no accord between the president and Congress on a spending plan for the remainder of this fiscal year, much less any prospect of reaching a budget consensus for the new fiscal year which starts in October, the government has reached the halfway point in fiscal year 2011.
The Congressional Budget Office reported Thursday that federal spending is growing more slowly than revenue – once you adjust the data for some special factors such as pre-payment of Federal Deposit Insurance Corporation premiums.
The encouraging news in the CBO report is that revenues are up 7 percent, compared to the first six months of the previous year. Personal income tax revenues jumped by more than 20 percent, compared to the same period last year, evidence of a recovery in incomes and in hiring. (About 1.3 million more people were working last month than in March of 2010.)
CBO said that overall spending growth is outrunning revenue growth: total outlays were up by $179 billion, or 11 percent. But it said that figure was skewed by special factors in the previous fiscal year, such as the FDIC pre-payments.
So CBO said adjusted federal spending growth – sifting out the onetime factors – is at about one percent.
National income, or gross domestic product, is growing by about 3.5 percent. So if that trend were to continue – faster GDP growth than federal spending growth – the deficit would begin to shrink.
The fastest growing categories of spending in the first half of the fiscal year: interest on the government debt, which was up 13 percent and the Medicaid health insurance program for low-income people, up by nearly 9 percent.
The cost of paying interest on the debt now accounts for nearly 7 percent of all federal outlays.
The level of federal debt is now higher than at any time since 1947 when the government was paying off the costs of fighting the Second World War. CBO forecasts that it will go even higher in the years ahead.
“With such a large increase in debt, plus an expected increase in interest rates as the economic recovery strengthens, interest payments on the debt are poised to skyrocket over the next decade,” CBO warned last January.
Raising the federal government’s borrowing limit will dominate congressional debate in the next several weeks, with Treasury Secretary Tim Geithner having warned Congress this week that the debt limit will be reached no later than May 16.
A new NBC News /Wall Street Journal poll showed that only 16 percent of those polled think Congress should raise the debt ceiling; 46 percent opposed the ideas and 38 percent said they didn’t know enough to have an opinion.
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really
A new NBC News /Wall Street Journal poll showed that only 16 percent of those polled think Congress should raise the debt ceiling; 46 percent opposed the ideas and 38 percent said they didn't know enough to have an opinion.
This is Great News. Think President will stand on his Convictions and veto any bill that would Raise the debt Ceiling? If by some chance Congress would pass such a bill I mean afterall he did say that the Ceiling shouldnt be Raised when he was a Senator
Steve-505729.... do you know the consequences of not raising the debt ceiling? It can be quite severe..... I'm a liberal-fiscal-hawk (because that's how I live my life) and think we need to balance our budgets NOW and not later... but that poll is disturbing because people don't actually realize the repercussions of not railing the debt ceiling....
Government shut-down actually costs more than government in operation... but a lot of people polled would actually think it's a savings to tax payers. When people start to think, they make better informed decisions.
Tunde Akins
Government shut-down actually costs more than government in operation... but a lot of people polled would actually think it's a savings to tax payers. When people start to think, they make better informed decisions.
You're preaching to the peanut gallery. Up means down to them.
Also if the Congressional Budget Office reported Thursday that federal spending is growing more slowly than revenue – once you adjust the data for some special factors such as pre-payment of Federal Deposit Insurance Corporation premiums; then what will the say about that.
Does it not prove the President is driving the economy in the ditch. It sounds so much beter than paul cruel and unusual punishment budget.
Trunde,
So you think Obama should Sign something he is Agaisnt. Of course you do.. I for one want the President to Show Some Spine But i guess if your Against something before you are for it. Thats ok. Right?
Tundie please do tell us the consequences of not raising the debt ceiling. Are you actually saying that will cause a default? Surely we can continue to make the payments on the existing debt service, right?
All it will do is prevent additinal borrowing, above the ceiling.
Also what are the consequences of raising it, again? In fact, that is a mighty good thing.
Tundie maybe you can tell us why we even have a ceiling at all. After all you are young and just starting out. What is it going to be like when debt service exceeds $1.5 Trillion a year? Not much left of anything else, right?
And Bev - you are correct - it does prove the president is driving the economy into the ditch. Now I can only assume that is not what you meant, but it is what you wrote.
The debt is driving the economy into the ditch. Oh, and the energy prices. Look out, gas hitting $5.00 = DOOM.
Steve you have it wrong. The President does want to raise the debt ceiling. To not do so would be crazy.
Yeah, I don't suppose you can articulate why it would be bad, can you job1?
Go ahead, give it a shot.
Wow, bev 1 5 growth after one time adjustments, Is that creative accounting or what!
Just think, further down in the article the CBO says this...
Hmmmm. with increasing revenue why does the CBO project ever increasing debt?
Either the projected interest on carrying the debt far exceeds the projected increase in revenues or bevs "happy days" scenario was only good for 1 year and spending will again outpace revenue.
Any comments there bev?
Steve-505729
Huh? Clear to restate your thoughts? the only thing I see you saying is that: the president is spineless; no facts, no thoughts, nothing except hate.... I hope you have a reason for hating though and it's just not blind.... but who am I kidding.
Spanky,
The consequences of not raising the debt ceiling is severe... not only will you shut down medicare/medicaid, SS and part of defense - this in itself will shut not just the government down, but the country as a whole; you will undoubtedly have damaged US's credit history (Credit Card maxed out to China)... hence in the event of an emergency, will not even be able to borrow from anyone. I don't know about you... I have a credit card...with a 0 balance - just in case.... America needs that too.
I may be young, but more well informed than more than 90% of folks twice my age. Thank you... I chose to educate myself (academically and real world).... The debt we have in this country is not a joking matter.... and we need to take it really really seriously and not demagogue the issue.
What most republicans think is that Government is spending money like drunken sailors and most of the money goes to government workers..... that's far from the truth; discretionary spending is only 12% of the budget; the mountain of it is health care (Medicare/Medicaid/VA), SS and defense. If the debt ceiling is not raised, the first thing that will happen is the mountain will be rocked.... SS checks will be stopped, tonnes of senior citizens will be dropped off medicare or the age automatically and instantly raised to about 75 or so to make it still solvent. And our nation will be defenseless against the likes of Ahmedinejad. Spanky... these are facts and times like this, republicans and dems need to come together and lay down the truth to the American people - because extreme folks from either party drive the discussion with a faulty agenda. We need to find a way to ease our pain.... we've already dug ourselves a whole...
The $1.5trillion deficit has little to do with Obama, but with the decisions we've made in the last 50yrs..... economist have made faulty projections; and this has put us to where we are today. They said American should be making X... and the cost of health care/Defense and SS should be Y... they got it wrong and in reality... X didn't grow as fast, but Y grew faster than expected. Unless our budgetary system is completely over-hauled to match reality.... we are in for a world of hurt.
Why do you think repubs can only manage to trim $33billion (and this by itself is coming from services to middle class and poor). Why can't they trim the $1.5trillion? Because they can't and are not even addressing the real issue. They are throwing you a bone and you bite.
Again Spanky....I may be young, but well informed about both present times with good historical perspectives. I know and believe in what I talk about... not because some talking head told me, but because I researched it myself.... if you want to know more detail, just let me know and I'll gladly explain....afterall, my only reason for posting is to make this country better, with the little knowledge I've amassed in my short lifespan - as you put it. ;-)
Spanky and Steve..... my name is "Tunde"
American.... what you say about the CBO is true....but not a consequences of Obama's decision. We need to address the true reason. Too much spending (medicare, medicaid, SS, defense) and a not so good economy.
Tunde, Please ..
Search as to whether or not Obama was Against Raising the Debt limit during the Time he was a Senator. And when you find out that he was in fact against Raising the Debt Limit then . How do you know Reconcile the Fact that he is now for Raising it since he is President.
If you were so Educated you would know that he was Against it.. But now is For it. Research my young friend. Nevermind i can't expect you to be Honest in your Research
Senator Barack Obama Explaining his 2006 Vote Against Raising the Debt Limit
January 4, 2011 11:49 A.M.
By Andrew C. McCarthy
From Sen. Obama’s Floor Speech, March 20, 2006:
The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that “the buck stops here.” Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.
At the time, Senator Obama was urging Congress not to tolerate an increase that would bring the debt ceiling to $9 trillion. Under President Obama, the debt ceiling has been raised to $14.3 trillion. Even without counting most unfunded liabilities, the national debt is now calculated to be nearing $14.1 trillion. It increases about $4.22 billion per day (each citizen’s share stands at roughly $45K). Thus, Democrats will soon demand that the debt ceiling be raised, lest the sky fall. When they do, they will be asking for a significant boost in a ceiling that is already 60 percent higher than the one Barack Obama said was “a sign of leadership failure” five years ago.
Steve-505729, I don't disagree with what you say...that then Senator Obama was against the raising debt ceiling to $9trillion.... I'm against the debt ceiling period... but I'm not dumb as to what happens and how one statement can be misconstrued to mean something else - which is what you''ve done. And you know that you are being disingenuous when you bring a statement from then and ascribe it to today - even though I know you wont understand it, but it's not the same - times were different. President Obama (I'm not trying to defend him, but you force me to) was protesting the wars and bush's tax cuts for the rich - which is why he was against raising the debt ceiling.... but even though he wanted to not revert to Bush's tax cuts.... he did and that's 1trillion added to the debt over 10yrs. He compromises... pretty much at his own peril most of the times... but he's trying to get stuff done.
At the time, Senator Obama was urging Congress not to tolerate an increase that would bring the debt ceiling to $9 trillion. Under President Obama, the debt ceiling has been raised to $14.3 trillion.
Also, that statement is a lie.... you make it seem that the president Obama raised it from 9 to 14.... sheeeze... he rose it once last year from 12.4 to 14.9 trillion to accommodate TARP and Stimulus. Before that Bush raised it from $5.95 to $12.4 in his 8 years as president and there was actually no recession when that fool ran the country.
Bottom line is that whether the Bush admin like it or not... they destroyed America as we know it, and we are never going back to the America I grew up in.. it's dead.
And these I speak of are truly my thoughts... not something I read on the internet as facts (lies or someone else's opinion).
CBO: Seniors Would Pay Much More For Medicare Under Ryan Plan
Tunde
Steve-505729
Huh? Clear to restate your thoughts? the only thing I see you saying is that: the president is spineless; no facts, no thoughts, nothing except hate.... I hope you have a reason for hating though and it's just not blind.... but who am I kidding.
#1.8 - Thu Apr 7, 2011 3:12 PM PDT
Now i stated Fact. I gave you the Presidents own Words. but instead of the Light coming on you continue to Defend him. I said in my Early post he was Spineless and doesn't stand on his Convictions about Raising the Debt limit and passing it on to our Children and Grand Children. Now he is for Raising it and Passing it on to Children and Grand Children. I understand you will Defend the Incompetant at all Cost. but Geez.. I dont hate the man. . HE IS JUST A TERRIBLE PRESIDENT
....
Federal Spending is growing more slowly than "Revenue"? No kidding the Republicans think Revenue is a foreign word, subtitued for Tax Cuts. Somewhere along the way they missed the math class and took fuzzy math that says Tax Cuts equal Revenue. They missed the class that says Debit vs. Credits is how you balance a budget not tax cut for the Rich and budget cuts for the Middle Class. In their world 2+2=10
Come on June, let's give Obama his due - he chose to extend the tax rates. These are Obama's tax cuts for the wealthiest 2%, right?
Now don't you think Obama is a smart guy and knows what he is doing?
Also June you are aware of the many, many times rates are raised, but less revenue is generated, right?
See June I didn't miss the class. In fact I've been through many bankruptcy workout where the revenue is the same or in most cases goes down, but the books are balance off cuts alone.
How about you June, you ever been a part of serious belt tightening?
It does such, and will continue to suck for you all, but the fact is it's belt tightening time. The Tea Party has won the debate - its only cutting from here on in. Obama only sought to freeze, and that ain't going to fly, right June?
Today Blue Dog Dem Voted With GOP Vote Against Fighting Climate Change Latest Move In History Of Environmental Extremism & We Wonder Why The President Is Having A Problem With The Republican Budget Proposal This Is One Of the Republican "Policy Riders" Even Republican Susan Collins Broke With The Republicans On This
Today “Democrats Vote With Republicans To “Hobby Climate Change” Eliminate The Clean Air Act
The series of votes this afternoon on four different anti-climate amendments demonstrated that some Democrats are also “Supporting the Polluter Agenda”
In addition to the four Democrats who voted for the McConnell amendment –
Only Sen. Susan Collins (ME) broke the Republican ranks to vote against the McConnell amendment, voting instead for Rockefeller's two-year delay bill.
If all 64 Senators were to vote for legislation to hobble climate action in the future, a filibuster would fall, and only a veto from President Obama could protect the Clean Air Act from the polluter agenda
Americans it's time to "Read & Get Informed" Greed Is The Theme Of The Day From Both Parties, Campaign Money, Who's donating to whom....................................Sad Day......Mr. President I feel your pain..............What's A President to do when the Hens in the Hen House have no commitment to make the lives better for those who voted them into office.
Yep, the EPA is DOA.
See you can only over-reach for so long, then you get smacked down.
So why is it you now hate bi-partisan efforts June? THose dems voting against the EPA can't all be wrong can they?
June, we should foster and support bi-partisan efforts, right?
Say June you ever even consider your position is just wrong? It that even a possibility?
Naaa, I didn't think you did.
President Obama couldn't get Cap & Trade through Congress so he tried to give the EPA the right to implement it through a back door.Most Americans don't want cap & trade and i'm pretty sure if the Democrats would agree to to drop it we wouldn't have a gov't shutdown.