U.S. fiscal condition for 2009 president will hardly be ideal

February 25th, 2008 | Category: Politics

What’s the new president - - Republican or Democrat - - likely to face after taking the oath of office in 2009?

Daunting fiscal problems - - and right at a instance when Congress may have to consider more fiscal stimulus to jump-start the U.S. economy, one economist observed.

The biggest problem, economist Glen Langan said, will be the federal government’s budget deficit. The United States is on-track to record a $200 billion deficit in Fiscal 2009 and a $241 billion in Fiscal 2010 - - and that’s whether the U.S. economy doesn’t fall into a recession, Langan said, citing Congressional Budget Office details.

“The baseline CBO projections present a large budgetary task for the new president, but by

itself it’s not an impossible one, absent a major recession. The problem is there’s no money available to tackle any other problems, including ones a Democratic president would address - - health care, energy policy, education and infrastructure. And don’t forget the Iraq War, anti-terrorism efforts, and potential mortgage assistance programs,” Langan said. “If there aren’t changes to the tax cipher, given the current revenue structure and tax rates,to say the next president’s hands are tied regarding new programs, would be an understatement.”

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Original post by Joseph Lazzaro

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