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$477 Billion?--What a Joke! 1/26/2004 1:49:44 PM
The CBO has just came out with an estimate of a $477 b deficit for 2004. Its provision estimates should be examined.
The CBO estimate undoubtedly used the estimated $350 b of SS taxes to cancel the greater magnitude of the deficit. This would make the deficit closer to $820 b, if the SS Fund were kept in a 'Lockbox' are previously promised to Voters in the previous Century. Even this figure is a Joke, as SS taxes will reach $350b for 2004, if and only if, the Unemployment rate drops below Four percent. Further extension of the above Joke, and all newly-hired will pay the maximum SS taxes; this will not be the case unless new Hires are all given about an $8-20,000 immediate raise.
New unmentioned items:
Correction of the AMT--$172b
Special Funding for Iraq and Afghanistan--$50b
Anti-Terrorist funding--$50
State Bailouts and payment of Delayed Promises--$300b
Real expected Deficit for 2004:
$477
+172
+ 50
+ 50
+300
-----------
$1.049 Trillion, if SS taxes can hit $350b in value.
I am quite sure Republican Economists will contest my evaluation. I am also quite sure my estimate will equate closer to the actual Deficit for Y2004, even if it is an overestimate, than their's as underestimate. lgl
