The bad news:
we're going broke

Here’s some cheery news from the nonpartisan Congressional Budget Office: the red ink is not going to get any better.

Its analysis of President Barack Obama's budget plan shows it will trigger deficits averaging nearly $1 trillion - $976 billion - every  year over the next 10 years, the CBO said late last week.

As of Thursday, the national debt was $12.5 trillion. Last year’s record shortfall was $1.4 trillion, and spending is on track to beat that this year, only adding to the problem.

Obama had estimated an average annual budget shortfall of $853 billion for each of the next 10 years. He is banking on - Surprise! - more tax revenue.

“The Hill” reports the CBO expects Obama's revenues - based on predictions of more economic growth than the CBO is anticipating - to total $37.3 trillion. That is  more than the $35.5 trillion the CBO is forecasting based on projections of less economic growth.

Forget the arguments about annual economic growth, or how much the government can get in taxes, ask yourself this: How much longer can this government continue to spend like there is no tomorrow? When will this nation finally have to declare bankruptcy?

Here is the problem in a nutshell: The Hill reports, “The larger deficit so far is due almost entirely to a drop in tax revenue. Spending by the government is about the same as last year, but tax receipts dropped from $861 billion to $796 billion.”

The government had less money, but spent about the same. How long could you manage that at your house?

Our prescription to begin the arduous path to fixing this mess would include reduction of all taxes - even cutting the capital gains tax to zero for a period of time to encourage investment - halting handouts and getting government out of the way of private enterprise.

The big thing - the absolute biggest thing - would be to trim government spending to match income. Spending smarter would be a good start.

Without any of that, our great-grandchildren will still be paying off our debt - and living in what will have become a Third World nation.

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