Thursday, January 16, 2003

Headed for disaster:

Proponents of Bush's latest tax plan (notably David Frum) have said that it will "get the economy in shape for the retiring boomers". But how does that square with this news item (NYTimes):
Bush Aide Sees Deficit in 2003 of $200 Billion

... deficit forecasts were made by Mitchell E. Daniels Jr., the president's budget director, in answer to questions after a speech at the United States Chamber of Commerce here. The estimates assume enactment of the tax plan but do not take account of the potential cost of a war with Iraq ...

Mr. Daniels suggested today that the budget was not likely to be in surplus in the next 10 years.
(emphasis added)

That means there will be no surplus funds built up (or debt paid down) to prepare for Social Security's imbalanced pay-as-you-go system when the boomers retire.


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