CBO: Budget Deficit Blowout for Decade

The CBO does not agree with the rose-colored budget deficit projections of Obama's White House. In fact, the CBO sees $1 trillion+ deficits for the entire next decade.

I don't argue that deficits are a bad thing when they are used for tax cuts that help promote growth. In fact, if they are used for tax cuts, I would always advocate an approximately 3% of GDP deficit, which according to Milton Friedman, was roughly the politically acceptable level. Above that amount becomes a bit risky and below that amount allows for government's propensity to spend. In a perverse way the only way to reign in spending is to deliver tax cuts back to taxpayers up to that politically acceptable deficit level.

Once in a while (such as the mid-90s under Newt Gingrich), Congress will actually decide to balance the budget, which theoretically is a good thing and in the long run may be required to convince countries to hold our debt. Unfortunately, those historical precedents under the Obama-Pelosi regime are long gone and now we will expect to see 10-15%+ deficits over the next few years and perhaps get it back to 5% in a decade (or roughly double the George W. Bush era) if we fortunate.

Pretty scary stuff, which is why the 90% bonus tax is likely here to stay. Today, TARP recipients, tomorrow, everyone else. That has been the goal of Obama's all along, for those who have been paying attention. Full speed ahead with government-run universal healthcare, the carbon tax, card check,...