Katrina Bailout Means Big Deficits, Higher Taxes

[papau]

Seems a Federal deficit that is now slightly more than 3 percent of GDP, will be over 4 percent by the end of the decade and which will rise to above 6 percent toward the end of the next decade, has caught some attention among the monied folks. Perhaps the line for Social Security that Bush has been using -"the longer big deficits are allowed to persist, the larger the eventual increase will have to be" applies to income taxes? Of course Social Security is running surpluses, so the comparison is not fair.... - sigh....




http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_berry&sid=aZ2ZDJ8JRECM

Katrina Bailout Means Big Deficits, Higher Taxes
: John M. Berry

Sept. 28 (Bloomberg) -- President George W. Bush and his administration have been widely criticized for their inept response to Hurricane Katrina. Bush's sweeping promises to rebuild New Orleans and the surrounding Gulf Coast region have been equally devoid of serious leadership. <snip>

The first step in being wise in this case would have been for the president not to suggest an open-ended commitment of federal money. His words underscored how little he actually seems to care about fiscal discipline or the long-term consequences of running large budget deficits when national saving is much too low to adequately finance them. <snip>

Federal Reserve Chairman Alan Greenspan certainly thinks that, according to French Finance Minister Thierry Breton. At a Sept. 25 press conference in Washington after a meeting between U.S. and French officials, Thierry said Greenspan told them he ``very bitterly regretted'' that budget deficits are no longer a political priority. Greenspan said the U.S. has ``lost control, and that's his expression, of its budget,'' according to Breton.

Citing that loss of budget control, yesterday the Committee for Economic Development, a business-backed research and policy organization, recommended a fiscal ``war on all fronts,'' that should include revising entitlement programs such as Medicare, reducing discretionary spending and raising new revenues. <snip>

[acmavm]

1. Higher taxes? For who. You and me? No doubt. Warren Buffet or

Bill Gates? Not if this corrupt crown of republican asswipes gets their way.

[nadinbrzezinski]

2. I doubt they will be in charge in 10 yers

so I can see a tax on the rich of 50+ %.. bear in mind it was at close to 90% in the 1950s, where it should be

Oh and Buffet would not mind, now Gates on the other hand...