Congressman John Campbell's Blog - Green Eyeshade Blog

Thursday, September 11, 2008

Posted by: John Campbell at 1:42 PM

Yesterday I blogged about the new CBO numbers on the deficit and the remarkable jump in the deficit figures.

If that is extended over the full 2008-2018 period, CBO projects that spending will average 21.1% of GDP. Federal revenues have never exceeded 20.9% of GDP (a level reached in 1944, 2000). Keep in mind that 1944 was one of the most active years of the Second World War.

There is no precedent for federal taxes at the level CBO projects federal spending will be over the next ten years. Spending must be cut, and the next President and Congress must hold the proverbial fiscal line. If fiscal discipline is not exercised, in spite of what some are saying about taxing only “the rich”, they will have to take a big bite out of everyone’s paycheck in order to pay for the spending that is being proposing.

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Kevin writes:	Thursday, September, 11, 2008 1:52 PM
Put Lipstick on that Pokry Pig
We need to see this being talked about. If anyone is a pig it is the porky dems and their guy is nothing more than lipstick. We need to barbecue this pig before it barbecues our kids.
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Nina writes:	Thursday, September, 11, 2008 4:10 PM
Take a bite out of your paycheck
You are so right. We have to cut spending AND reduce taxes, that is the only way to increase revenue and grow the economy. Either one alone will not do it. Especially Obama's fraudulent so called tax break for 95% of Americans. All he is going to do is cut welfare checks for everyone. There won't be any real tax cuts. Nina
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fencerdad writes:	Thursday, September, 11, 2008 5:04 PM
At those levesl of spending...
the only way the government can raise enough is by enacting the Fair Tax. It will generate 23% of GDP and will allows people to be discretionary about when the want and they don't want to pay the tax. Given this trend and the trend in Social Security and Medicare, the Fair Tax will become a necessity.
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Yt_Knight writes:	Friday, September, 12, 2008 10:37 AM
FairTax + spending control...
We need to: 1. Stop the tax game (66,000 pages of tax code that creates winners and losers with altered markets). 2. Control Spending. If you haven't checked out the FairTax, please do so at http://www.fairtax.org. Peace, YK
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davpatt3 writes:	Saturday, September, 13, 2008 1:31 AM
Cut Off the Big Pig
Won't a pig pretty much eat itself to death if allowed? Cut the Federal Government off from the Fed Reserve. Aren't they the ones printing money at the request of the Fed. Gov't. and selling national debt for a profit? What would happen to anyone if they started a bank and used it for their own benefit and dumped the expenses on the back of the everyday customers?
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About John Campbell

John Campbell is a member of the House Financial Services Committee, and has taken a leadership role in addressing the country's top economic issues. Campbell serves as a member of the Joint Economic Committee, and House Committee on the Budget. He has a Bachelor's Degree in Economics from UCLA and a Master's Degree in Taxation from USC.