Deficit

Here's How Washington Is Likely to Trim Our Social Security Benefits

When Congress and President Obama make a budget deal to avoid the fiscal cliff, they're likely to use something called "chained CPI" to tweak how Social Security calculates cost of living adjustments. Here's a plain English explanation of what that means, and how it will effect your retirement.

Obama Sends FY2013 Budget Proposals to Congress

President Barack Obama on Monday sent Congress a new budget that seeks to achieve $4 trillion in deficit reduction over the next decade while at the same time showering billions of dollars of increased spending on areas aimed at giving the economy a quick boost.

Postal Service Delivers the Bad News About Closures

In a last-ditch effort to save itself from bankruptcy, the Postal Service is forging ahead with plans to close half of its 500 mail processing centers and roughly 3,700 of its post offices. The result: Deliveries will take longer.

Junk Mailers Get a Break on Postage. You Don't.

Postmaster General Patrick Donahoe has announced his latest initiative to save the post office from bankruptcy. (Hint: Improving customer service isn't a part of it.) His master plan: Hike the cost of mailing a letter for real people, and cut prices for junk mail.

Would You Do Your Banking at the Post Office?

Could your bank teller could go postal? Offering basic consumer banking services in the form of prepaid debit cards is just one of many ideas the U.S. Post Office is considering to boost its bottom line. And even with stamp costs going up to 45 cents, the USPS is in dire need of outside-the-box solutions to its budget woes.

Obama Wants to Raise Taxes on the Rich

President Barack Obama called for $1.5 trillion in new taxes Monday, part of a total 10-year deficit reduction package totaling more than $3 trillion. "We can't just cut our way out of this hole," the president said.

Why Taxing the Rich Is Good for America

Last week, Warren Buffett wrote an incredible opinion piece in The New York Times asking the government to raise taxes on the wealthiest Americans, himself included. "My friends and I have been coddled long enough by a billionaire-friendly Congress," he argued, and he's not alone in that view.

Obama Eyes Medicare Changes, Tax Increases

Challenging Republican budget plans, President Barack Obama on Wednesday proposed lowering the nation's future deficits by $4 trillion over a dozen years by lowering spending in politically sensitive health care programs while also increasing taxes.

Will Budget Battle End With a Tax Increase?

Republicans pushing for spending cuts in the 2011 federal budget may be ready to shut the government down to get their way. But is anyone ready to do what it would take to really make a dent in the federal budget: raise taxes on the rich, close corporate tax loopholes, and cut war spending?

Recession Lingers On in Silicon Valley

Much has been made recently of the huge valuations of Internet players like Facebook, Twitter and Zynga, but while Web 2.0 is doing well, the Silicon Valley region itself is not. A new report shows compensation and unemployment in the region haven't improved since the downturn.

Obama's 2012 Budget: Why Federal Spending Needs to Be Raised, Not Cut

President Obama's proposed spending plan seeks to slash $1.1 trillion from the deficit over the next decade. Republican House Speaker John Boehner says that's too little. In fact, the cuts go too far in the wrong direction: With the economy still recovering, Obama should raise federal spending.

Obama's $3.7 Trillion Budget Heads to Congress

With spending cuts and tax hikes on the rich, President Obama says the U.S. will reap $1.1 trillion in deficit savings over the next decade. But his 2012 budget has already been met with harsh criticism by Republicans for not going far enough.

Texas Eyes College Financial Aid Cuts

The Texas State Legislature and Gov. Rick Perry are working to balance the state budget by reducing spending, which means cuts to all government...

Lawmakers Approve Illinois Tax Hike

Illinois lawmakers approved a 66% increase in the state%u2019s income tax in the final hours of the Legislature%u2019s session. Lawmakers raised the state income tax to 5% from 3% in a bid to close the state%u2019s deficit, which could be as large as $15 billion, The New York Times said.

A Rising Economy Is Pushing Down Treasurys

Doomsayers insist the recent rapid rise in yields signals the nation's creditors finally getting fed up with financing U.S. deficits. But a stronger argument can be made for blaming the better-than-expected economic reports that have been piling up recently.

Treasury Yields Rise on Optimism About World Economy

Treasury yields hit a six-month high Monday on optimism about the world economy and concern about the U.S. deficit. Yields have been steadying climbing as investors bet that a stronger world economy will lead to higher interest rates, Reuters reported.

Tax Cut Deal May Incite Bond Vigilantes, 'Dr. Doom' Warns

Nouriel Roubini, the NYU economics professor who has earned the nickname "Dr. Doom" for his predictions, says he's concerned the tax cut compromise struck by President Obama and GOP leaders could expose the U.S. to bond vigilantes who will drive up bond yields, resulting in higher borrowing costs for the federal government.

Bipartisan Debt Proposal Fails to Get the Votes

President Obama's bipartisan National Commission on Fiscal Responsibility and Reform voted Friday on whether to approve its own recommendations, and failed to get the 14 votes from its members required to send its proposal to Congress. But don't count out deficit reduction quite yet.