Energy minister leads Saudi delegation to COP29 Baku    Saudi Cabinet upbeat about Riyadh summit strengthening joint action to stop Gaza war    "Tilal" launches "Heart of Khobar" project costing SR6 billion at "Cityscape Global" in Riyadh    Saudi Arabia advances 22 ranks in World Bank's Statistical Performance Index    EXPRO chief: Financial proceeds of expenditure efficiency amounted to SR1.15 trillion    Saudi drivers' income from delivery applications reaches SR1.1 billion in first 9 months of 2024    Saudi Champion Saeed Al-Mouri scores notable feat in Radical World Championship in Abu Dhabi with support from Bin-Shihon Group    'Marvels of Saudi Orchestra' to dazzle audience in Tokyo on Nov. 22    Pakistan PM visits MWL headquarters in Makkah    Riyadh: The hub of wisdom and the pillar of solidarity    Toxic smog in Pakistan is so bad you can see it from space    New Zealand PM says sorry for 'horrific' care home abuse    New arrests made in Amsterdam over violence after football match    Climate fight 'bigger than one election', says Biden's top envoy    Red Sea International Film Festival returns to Al Balad in its fourth edition    Rita Ora is tearful in tribute to Liam Payne at MTV Awards    'Art of the Kingdom': First traveling exhibition of contemporary Saudi art launched in Rio de Janeiro    France to deploy 4,000 police officers for UEFA Nations League match against Israel    Al Nassr edges past Al Riyadh with Mane's goal to move up to third    Al Ahli continues strong form with 2-0 win over Al Raed in Saudi Pro League    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Muted Eid celebrations for millions of Nigerian Muslims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Bush leaves few options for successor
Published in The Saudi Gazette on 21 - 06 - 2008

When President McCain or President Obama takes office next year, he will inevitably find George W. Bush's budgetary legacy haunts the White House.
Bush will leave record budget deficits, a sluggish economy and rising health-care and retirement costs that are likely to constrain his successor's ability to pursue his own policies, analysts say. Democratic candidate Barack Obama has outlined a range of ambitious programs, from rebuilding the nation's bridges to extending health care to the nation's 47 million uninsured, that could cost hundreds of billions of dollars.
Republican John McCain hopes to make Bush's 2001 and 2003 income-tax cuts permanent, cut the corporate tax rate and simplify the tax code. These measures could dramatically slash federal revenue.
“While each of them is running on one agenda, whoever wins, the day they enter office another is going to be presented to them,” said Maya MacGuineas, president of the Committee for a Responsible Budget and a budget expert with the New America Foundation.
Budget
The U.S. budget deficit burgeoned under the Bush administration because of several rounds of tax cuts that slashed revenue while the government pursued wars in Iraq and Afghanistan that cost $11 billion a month.
Bush could leave his successor a record $500 billion budget deficit, compared with the $128 billion surplus he inherited when he took office in 2001.
Under Bush, the national debt has nearly doubled to $10 trillion. That requires interest payments of roughly $200 billion each year - more than any other single category of government expenditure except defense, the Social Security retirement fund and Medicare for the elderly. With the budget already stretched, finding revenue for new spending programs or to offset further tax cuts could be especially difficult.
Economy
The next president will inherit a sluggish economy hobbled by high energy prices and a housing slump, brought on in part by the Bush administration's drive to expand home ownership.
Hard times for businesses and consumers means the government collects less tax revenue.
Revenue from taxes on corporations dropped 14 percent over much of last year and tax revenue from workers' paychecks recently has been flat, according to a research note by Goldman Sachs. McCain has proposed a gas-tax holiday over the summer and other tax cuts to boost the economy. But he will probably have a hard time getting them through a Congress expected to remain under Democratic control.
Obama has said he might defer his proposed tax increases on the wealthy if the economic picture remains grim.
Medicare and social security
Ballooning payments to the elderly through Social Security and Medicare will pose a growing problem with the retirement of the country's 77 million Baby Boomers, born between 1946 and 1964. By 2017 when a second Obama or McCain term would end, each household would have to pay an additional $2,000 a year in taxes to cover these costs, according to Brian Riedl, a budget expert at the Heritage Foundation.
Medicare, the $400 billion health-insurance program for the elderly, began paying out more than it takes in this year.The Medicare program that pays for hospital visits is expected to go bankrupt in 2019 and a program that covers prescription drugs, added during Bush's tenure, will increase costs as well. “It's very unlikely we will see the budget ever balanced again” unless Medicare and Social Security are fixed, Riedl said. - Reuters __


Clic here to read the story from its source.