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Tax Hikes Loom as Deficit Nears $1T

Blue or red, next president may need to boost revenues with increase

By Ambreen Ali, Newser User

Posted Oct 16, 2008 10:03 AM CDT

(Newser) – The bailout and other government spending are adding on to an already-enormous US budget deficit, and the next president might well have to raise taxes, no matter who it is, the Christian Science Monitor reports. This fiscal year will put the US down nearly $1 trillion, one nonpartisan group estimates, raising the possibility that foreign lenders will move away from purchasing US debt.

Government debt doesn’t seem “like such a good bet anymore” to outside investors, says a fiscal watchdog. This year’s deficit is about 7.5% of gross domestic product—the highest percentage since World War II—and adds $8,620 of federal debt per household. “We may well have passed the point where the federal government's total financial hole exceeds the net worth of all Americans,” adds an analyst.

Lawmakers discuss the federal budget with reporters. (AP Photo)

Chart shows budget surplus or deficit from 1993 to 2009. This year's red ink budget could set a record.

Lawmakers facetiously award the Bush administration medals for the highest budget deficits. (AP Photo)

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Tax Hikes Loom as Deficit Nears $1T

Blue or red, next president may need to boost revenues with increase

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national debt • budget deficit • tax hikes • financial crisis • Wall Street bailout • Treasury bills

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Jittery About Loss, Investors Stuff Cash In 0% T-Bills

Willing to take nothing for their money

What Will Taxpayers Shell Out for All This?

Some bailouts are more risky, some less—and add up to $1 trillion

Federal Budget Deficit More Than Doubles, to $407B

Stimulus package contributed; figure is expected to break record in fiscal '09

How Much Did Obama Really Add to Deficit?

Ezra Klein crunches the numbers and comes up with a lower total than you think

Deficit to Shrink ... to $1.1T

Congressional Budget Office releases its assessment

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Tax Hikes Loom as Deficit Nears $1T

Blue or red, next president may need to boost revenues with increase

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OTHER STORIES ON OUR RADAR

national debt • budget deficit • tax hikes • financial crisis • Wall Street bailout • Treasury bills

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Jittery About Loss, Investors Stuff Cash In 0% T-Bills

Willing to take nothing for their money

What Will Taxpayers Shell Out for All This?

Some bailouts are more risky, some less—and add up to $1 trillion

Federal Budget Deficit More Than Doubles, to $407B

Stimulus package contributed; figure is expected to break record in fiscal '09

How Much Did Obama Really Add to Deficit?

Ezra Klein crunches the numbers and comes up with a lower total than you think

Deficit to Shrink ... to $1.1T

Congressional Budget Office releases its assessment

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Newser By Users

Community

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