Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

8/23/2012 (2 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 (2 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'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for March 2015
Universal:
Scientists: That those involved in scientific research may serve the well-being of the whole human person.
Evangelization: Contribution of women: That the unique contribution of women to the life of the Church may be recognized always.


Rosaries, Crosses, Prayer Cards and more... by Catholic Shopping .com


Comments


More Business & Economics

Federal taxes unbelievably through the roof for February Watch

Image of Uncle Sam took in a lot of cabbage for the first few months of 2015. Why is the U.S. still trailing a momentous deficit, then?

By Catholic Online (NEWS CONSORTIUM)

Uncle Sam took in a lot of cabbage for the first few months of 2015. Inflation-adjusted federal tax revenues hit a record $1,185,613,000,000 in the first five months of fiscal 2015. Why is it that the U.S. federal government still ran a $386,537,000,000 deficit ... continue reading


Top 10 most financially important cities in the world Watch

Image of

By Hannah Raissa Marfil (NEWS CONSORTIUM)

New York City is still the most important center in the financial world, according to the latest ranking made by the Long Finance in The Global Financial Index 17. In the latest rankings, it was observed that more cities in Asia are becoming important within the world ... continue reading


Apple topples AT&T from Dow Jones in reflection of iPhone's dominant position Watch

Image of The move by S&P Dow Jones Indices had been widely anticipated since a seven-for-one stock split in June 2014.

By Catholic Online (NEWS CONSORTIUM)

Largest company in the world, Apple will join the Dow Jones Industrial Average to replace AT&T. The change reflects the dominant position of the iPhone maker in the U.S. consumer economy today. The figures tell the tale: Apple has a market capitalization of ... continue reading


'Underage Red': Sephora shocks consumers with inappropriately named lipstick shades Watch

Image of

By Hannah Raissa Marfil (NEWS CONSORTIUM)

With lipstick shades called "Underage Red" and "Lolita," the cosmetic retailer brand Sephora is under fire once again. Using names that refer to young girls being described in a sexualized manner, the lipstick shades grabbed the attention of shoppers, eventually ... continue reading


Oprah Winfrey sadly shuts down Harpo Studios forever Watch

Image of 61-year-old, Oprah Winfrey continues to play an active role in Hollywood, despite the ending of her talk show and now Harpo Studios.

By Abigail James (NEWS CONSORTIUM)

Oprah Winfrey is set to shut down production at her Chicago-based Harpo Studios by the end of 2015. After much thought, the billionaire mogul has decided production for her personal network OWN will be better done in Hollywood. LOS ANGELES, CA (Catholic Online) - The ... continue reading


SHINY, RED APPLE: Computer giant is now twice as big as world's second largest firm, ExxonMobil Watch

Image of Strong sales of the larger-screened iPhones resulted in the largest quarterly profit reported by a company, with device sales rising 29.5 percent in the final three months of 2014 to $74.6 billion,

By Catholic Online (NEWS CONSORTIUM)

How big is Apple? The creator of the iPhone and tablets is SO BIG that it is now currently twice as big as its second-closest rival, ExxonMobil. This is being reflected in the stock market, where shares in Apple jumped 2.7 percent at the start of the week to ... continue reading


WHERE IS YOUR MONEY GOING? Government collects $1 trillion from taxpayers - and there's still a deficit! Watch

Image of Where is all of our hard-earned money going?

By Catholic Online (NEWS CONSORTIUM)

Where is all of our hard-earned money going? Real federal tax revenues for the first time ever topped $1 trillion in the first four months of the fiscal year, October through January, according to data released Wednesday by the U.S. Treasury. LOS ANGELES, CA ... continue reading


80 MILLION Americans have their privacy invaded in Anthem data breach Watch

Image of An internal investigation, days later verified that the company was a victim of a cyber-attack, the company said, and federal authorities were alerted.

By Catholic Online (NEWS CONSORTIUM)

Insurance giant Anthem suffered a massive security breach when hackers broached computer safeguards and mad a wild data grab. Up to 80 million Americans have had their privacy effectively invaded, although authorities say more sensitive information was not ... continue reading


Electronic giant RadioShack files for bankruptcy - but will keep some stores open Watch

Image of The Chapter 11 filing, made in federal bankruptcy court in Delaware, surprised few. RadioShack had not turned a profit since 2011.

By Catholic Online (NEWS CONSORTIUM)

RadioShack, an iconic, 94-year-old electronics chain has filed for bankruptcy protection. The company has decided to sell up to 2,400 of its stores to the wireless service provider Sprint and a hedge fund that is its biggest shareholder. LOS ANGELES, CA ... continue reading


Is your bank account suffering? Here are 5 INCREDIBLY EASY TIPS on how to save money! Watch

Image of

By Abigail James (NEWS CONSORTIUM)

Saving money is not a simple task. It is hard to resist eating out or buying the hottest new music. How can your savings account grow when spending money is so easy in today's world? LOS ANGELES, CA (Catholic Online) - Whether you're planning on moving or looking to ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

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

Daily Readings

Reading 1, Ezekiel 37:21-28
21 say, "The Lord Yahweh says this: I shall take the ... Read More

Psalm, Jeremiah 31:10, 11-12, 13
10 Listen, nations, to the word of Yahweh. On the ... Read More

Gospel, John 11:45-57
45 Many of the Jews who had come to visit Mary, and ... Read More

Saint of the Day

Saint of the Day for March 28th, 2015 Image

St. Venturino of Bergamo
March 28: Dominican preacher and missionary crusader. A native of Bergamo, ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter