U.S. trade deficit 9500 billion $ to 2021?
March 23, 2011 at 2:16 pmCategory:News
The budget plan of U.S. president Barack Obama would produce a deficit of a whopping 9500 billion dollars over the next ten years, CBO estimates.
Non-partisan Congressional Budget Office (CBO) announced that more than 2,000 billion dollars more than estimates of the White House, reports the online edition of the Washington Post.
In calculating the president’s annual budget, the CBO concluded that Obama’s policies will cause you to be part of the national debt held by foreign investors doubled in that period, to 20,800 billion, or 87 percent of gross domestic product (GDP).
A large part of the negative impact on the state budget would come from Obama’s proposal to retain tax breaks for the middle class, which expires in 2012.
While Obama has proposed raising taxes on corporations and the wealthy, his tax policy as a whole will reduce revenues by more than 3,000 billion dollars in the next decade, CBO said.
The lost revenue will require more borrowing, which in turn will increase the interest on the national debt. CBO stated that the interest payments increase by more than four times by 2021. Obama’s politics, with 214 billion dollars this year, to more than $ 900 billion per year by early next decade.
On the other hand, Obama’s policies will reduce deficit spending over the next ten years, including a freeze on spending for domestic agencies in five years. However, the expenditure and tax collection will be above their historical averages by 2021., with public expenditure, which will consist of more than 24 percent of GDP and revenues at the level of 19.3 percent of GDP, CBO predicts.
Director of the Budget of the White House, Jakob Lu, a significant difference in the estimated deficit explained that “large uncertainties in economic projections and differences of opinion regarding the assessment of individual policies. “