Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

8/23/2012 (3 years ago)

Catholic Online (www.catholic.org)

Both republicans and democrats have not made progress in addressing U.S. financial woes

The projection is a bit down from an earlier estimate of $1.2 trillion - but there's now getting around the fact that the federal shortfall will be over one trillion dollars for the fourth straight year. The nonpartisan Congressional Budget Office projected this week that the deficit for 2012 will run $1.1 trillion. And they're warning that a new recession is highly likely.

Obama wants to renew expiring tax cuts for everyone except individuals earning over $200,000 and couples who bring in above $250,000 while Republicans are demanding that all tax cuts be extended. Both sides have made no progress over how to prevent budget-wide spending cuts from taking effect.

Obama wants to renew expiring tax cuts for everyone except individuals earning over $200,000 and couples who bring in above $250,000 while Republicans are demanding that all tax cuts be extended. Both sides have made no progress over how to prevent budget-wide spending cuts from taking effect.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

8/23/2012 (3 years ago)

Published in Business & Economics

Keywords: Federal deficit, Democrats, republicans, budget, cuts


LOS ANGELES, CA (Catholic Online) - An ongoing stalemate over tax and spending cuts is ongoing between Democrats and Republicans, fueling fears of yet another 2008.

The budget office said in its annual summertime report that allowing a decade-old tax Bush tax rates expire coupled with sweeping spending cuts in January, which will happen without congressional action "would lead to economic conditions in 2013 that will probably be considered a recession."

In the event of this occurring, the economy would contract by 0.5 percent, a far grimmer projection than previously predicted by the budget. Analysts say that joblessness would rise to around nine percent by late next year if the standoff persists.

This latest warning arrives during a presidential and congressional election year. Neither U.S. President Obama nor congressional Republicans have shown any signs of leeway in their ongoing battle over taxes, spending and the budget. The sluggish economy and massive federal deficits are top-flight issues in this year's campaigns.

Obama wants to renew expiring tax cuts for everyone except individuals earning over $200,000 and couples who bring in above $250,000 while Republicans are demanding that all tax cuts be extended. Both sides have made no progress over how to prevent budget-wide spending cuts from taking effect. These automatic cuts were set in motion by the failure of lawmakers to reach a bipartisan debt-reduction agreement in 2011.

Allowing the tax rates continue and well as preventing the spending cuts from taking effect would leave a deficit next year of over $1 trillion. If the reverse occurs, the shortfall would be $641 billion, detracting roughly $400 billion out of an economy that is already struggling.

Though continuing the tax rates and blocking the spending cuts would produce higher economic growth over the next two years, "it would reduce output and income in the longer run and is ultimately unsustainable," the budget office warned.

The report also sees an economy recovering at only a modest pace the rest of this year, growing at an annual rate of 2.25 percent.

.

---


Pope Francis: end world hunger through 'Prayer and Action'


Copyright 2015 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for February 2016
Universal:
That prisoners, especially the young, may be able to rebuild lives of dignity.
Evangelization: That married people who are separated may find welcome and support in the Christian community.



Comments


More Business & Economics

ECONOMIC DISASTER LOOMS: Wave of bankruptcies threaten global stability Watch

Image of A leading monetary theorist, William White says that the

By Catholic Online (CALIFORNIA NETWORK)

Waves of bankruptcies worldwide will severely test the world's economic and social stability, Swiss-based chair William White warns. A leading monetary theorist, White says that the "situation is worse than it was in 2007. Our macroeconomic ammunition to fight ... continue reading


Here's what they're really talking about at Davos -- it's not what they want you to think Watch

Image of The world economy is about to tank, or so it seems from the talk at Davos.

By David Drudge (CALIFORNIA NETWORK)

The agenda for Davos is about the future, and is intended to be optimistic, but discussion between the attendees is worrisome as they focus on serious, near-term financial threats. The world economy is on the brink and there are few tools left to fight recession. LOS ... continue reading


GRIM FORECAST: What jobs will be lost in the next FIVE years? A new report has shocking bad news for YOU Watch

Image of The Fourth Industrial Revolution will create a lot of casualties. How are we to cope?

By Marshall Connolly, Catholic Online (CALIFORNIA NETWORK)

A new paper released ahead of the World Economic Forum in Davos predicts that women in particular are at serious risk of losing their jobs within the next several years due to the emergence of new technology. The changes in the marketplace will hit wealthy countries ... continue reading


Retail giant Wal-Mart closing 269 stores in U.S. and Brazil Watch

Image of Of the closures announced Friday, 154 locations will be in the U.S., including the company's 102 smallest-format stores called Wal-Mart Express.

By Catholic Online (CALIFORNIA NETWORK)

Wal-Mart, the uncontested retail giant is just as susceptible to the difficulties of market demands as anybody else is. Wal-Mart has announced that it will be closing 269 markets in both the United States and Brail, the latter the result of a souring economy. ... continue reading


More than $5,000 in taxes collected for every U.S. worker - government still IN DEFICIT Watch

Image of There were 147,439,000 people employed in the United States in December 2014.

By Catholic Online (CALIFORNIA NETWORK)

In what should come as no surprise - tax revenue generated for the first three months of fiscal 2016 -- October through December of 2015 - set an all time record. This did not translate in a reduction of the federal deficit. The Internal revenue Service ... continue reading


U.S. economy to suffer because of China collapse Watch

Image of Chinese markets slid on Thursday, forcing a shutdown.

By Marshall Connolly, Catholic Online (CALIFORNIA NETWORK)

Another day of losses has hit markets around the globe, starting with a slide so fast and so deep in the Chinese markets that trading was halted. The ripples of the Chinese collapse are being felt around the world with U.S. markets dropping at least 1 percent. LOS ... continue reading


World's richest will meet in Davos, to decide how best to DISPOSE of you Watch

Image of The language of the forum is very benevolent, but make no mistake, the people gathering there don't have your best interest in mind. If they did, the world would be a much different place --and they wouldn't need snipers.

By Marshall Connolly, Catholic Online (THE CALIFORNIA NETWORK)

The Davos men are coming, and guess what's on their agenda? How they will carve up the new world created by the Fourth Industrial Revolution. LOS ANGELES, CA (California Network) - Known formally as the World Economic Forum, the annual meeting of the world's most ... continue reading


NOT-SO FUNNY MONEY: Weird currency in Israel collages American $100 bills with jihadist leaders Watch

Image of Israeli police are investigating the origin of the bills, which was being sent for a forensic analysis.

By Catholic Online (CALIFORNIA NETWORK)

Odd "play money" that collages the American $100 bill with photos of jihadist group leaders have been discovered in northern Israel. Discovered in the northern Israeli town of Sde Eliezer, authorities are stumped to the bills' origin and purpose. LOS ANGELES, ... continue reading


Greedy CEO loses $500 million in failing Obamacare investment Watch

Image of The CEO of United Healthcare invested in ObamaCare last year and will reportedly lose $500 million

By Kenya Sinclair (CALIFORNIA NETWORK)

In 2014, United Healthcare CEO Stephen Hemsley invested in ObamaCare. Today, he realized the decision would cost an estimated $500,000,000 over the next two years. LOS ANGELES, CA (Catholic Online) - By investing in ObamaCare, United Healthcare was able to lower ... continue reading


Three BILLION barrels of excess oil available now - but is this a good thing? Watch

Image of Inflated inventories and oil wealth has spread globally, from the United States to the developed economies of Europe, and now China, according to the agency.

By Catholic Online (CALIFORNIA NETWORK)

With the price of gas comfortably lower than $3 a gallon at many gas pumps across the land, consumers are enjoying a price break. The reason behind this windfall is largely because there are now more than three billion barrels of excess oil in the world. This ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

  • Daily Reading for Sunday, February 7th, 2016 HD Video
  • St. Moses: Saint of the Day for Sunday, February 07, 2016
  • Earth, Wind & Fire founder Maurice white dies at 74
  • MAKE YOURSELF COUNT! Complete this quick Ash Wednesday survey
  • Daily Reading for Monday, February 8th, 2016 HD Video
  • Lower Your Nets For a Catch! We Are All Called to Evangelize
  • Daily Readings for Sunday, February 07, 2016

Daily Readings

Reading 1, Isaiah 6:1-2, 3-8
1 In the year of King Uzziah's death I saw the Lord seated on a high and ... Read More

Psalm, Psalms 138:1-2, 2-3, 4-5, 7-8
1 [Of David] I thank you, Yahweh, with all my heart, for you have ... Read More

Gospel, Luke 5:1-11
1 Now it happened that he was standing one day by the Lake of Gennesaret, ... Read More

Reading 2, First Corinthians 15:1-11
1 I want to make quite clear to you, brothers, what the message of the ... Read More

Saint of the Day

Saint of the Day for February 7th, 2016 Image

St. Moses
February 7: Arab hermit and bishop who is called "the Apostle ... Read More