CBO report: Debt will rise to 90% of GDP. . . .

According to David M. Dickson at washingtimes.com:

President Obama's fiscal 2011 budget will generate nearly $10 trillion in cumulative budget deficits over the next 10 years, $1.2 trillion more than the administration projected, and raise the federal debt to 90 percent of the nation's economic output by 2020, the Congressional Budget Office reported Thursday.

In its 2011 budget, which the White House Office of Management and Budget (OMB) released Feb. 1, the administration projected a 10-year deficit total of $8.53 trillion. After looking it over, CBO said in its final analysis, released Thursday, that the president's budget would generate a combined $9.75 trillion in deficits over the next decade.

"An additional $1.2 trillion in debt dumped on [GDP] to our children makes a huge difference," said Brian Riedl, a budget analyst at the conservative Heritage Foundation. "That represents an additional debt of $10,000 per household above and beyond the federal debt they are already carrying."

The federal public debt, which was $6.3 trillion ($56,000 per household) when Mr. Obama entered office amid an economic crisis, totals $8.2 trillion ($72,000 per household) today, and it's headed toward $20.3 trillion (more than $170,000 per household) in 2020, according to CBO's deficit estimates.

That figure would equal 90 percent of the estimated gross domestic product in 2020, up from 40 percent at the end of fiscal 2008. By comparison, America's debt-to-GDP ratio peaked at 109 percent at the end of World War II, while the ratio for economically troubled Greece hit 115 percent last year.

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America Dragged Kicking and Screaming to the VAT

According to The MaryHunter at moonbattery.com:

Charles Krauthammer discusses ObamaCare's next trick.

We are now $8 trillion in debt. The Congressional Budget Office projects that $12 trillion will be added over the next decade. Obamacare, when stripped of its budgetary gimmicks -- the unfunded $200 billion-plus "doctor fix," the double counting of Medicare cuts, the 10-6 sleight-of-hand (counting 10 years of revenue and only six years of outflows) -- is at minimum a $2 trillion new entitlement.

This is a fiscally disastrous path, since out-of-control health care costs now will paid for under ObamaCare -- which did absolutely nothing to address the costs issue itself. Where will this lead us? Inevitably, to the VAT - both literally and figuratively.

The ultimate cash cow, value-added taxes have been used to feed welfare states worldwide. The European Union nations have enormous VATs: Germany: 19%, France and Italy: 20% percent, Scandinavian countries: 25%.

Obama set out to be a consequential president, on the order of Ronald Reagan. With the VAT, Obama's triumph will be complete. He will have succeeded in reversing Reaganism. Liberals have long complained that Reagan's strategy was to starve the (governmental) beast in order to shrink it: First, cut taxes -- then ultimately you have to reduce government spending.

Obama's strategy is exactly the opposite: Expand the beast and then feed it.

Surprise surprise, this was part of Chairman Zero's nefarious, free-market-hating plan from the start.

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Oh Great. . . .NOW the CBO tells us the debt will rise to 90% of GDP. . . .What happened to spending a TRILLION dollars was going to save us money? We are sooooo screwed. . . .

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To read the full article:
http://www.washingtontimes.com/news/2010/mar/26/cbos-2020-vision-debt-will-rise-to-90-of-gdp/