Lower Deficit Predictions May Hamper U.S. Budget Deal
The recovering economy is producing greater tax revenues, but an improving deficit picture also reflects the accumulating effects of prior rounds of spending cuts.
deficit
Obama Renews Focus on Jobs, Economy with Texas Trip
President Barack Obama travels to Texas to put his focus back on job creation and economic growth after intensive attention to gun control legislation and immigration reform.
IMF Chief Criticizes 'Abrupt' U.S. Budget Cuts
IMF head Christine Lagarde criticized the U.S. government's budget policies as too tight Tuesday, in an appearance in Amsterdam that was interrupted by student protestors.
Strong Housing and Auto Sales Boost U.S. Economy, Fed Says
A strengthening housing recovery and robust auto sales contributed to moderate growth across the U.S. in late February and March, according to a Federal Reserve survey.
Obama's 'Charm Offensive' Yields No Budget Breakthrough
Obama's widely publicized recent string of meetings with rank-and-file lawmakers seemingly produces no breakthroughs -- though none were anticipated.
U.S. Budget Deficit Grows by $260 Million in December
The U.S. annual budget deficit is on track to reach $1 trillion for a fifth straight year, though government revenue jumped last month as people paid some taxes early to avoid higher rates in 2013.
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.
Federal Deficit Tops $1 Trillion for Fourth Straight Year
The federal budget deficit has topped $1 trillion for a fourth straight year. But a modest improvement in economic growth helped narrow the gap by $207 billion compared with last year.
The $7 Trillion Issue Presidential Candidates Are Avoiding
Social Security has promises to pay out $41.4 trillion in future benefits, but it has just $34.5 trillion in assets and expected income to cover those promises. You do the math.
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 and close corporate tax loopholes?
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 this case, both Obama and Boehner are wrong. The nation doesn't need to spend less. It needs to spend more -- a lot more.
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.
A Rising Economy Is Pushing Down Treasurys
Doomsayers insist the recent rapid rise in yields means the nation's creditors are finally getting fed up with financing U.S. deficits. But a stronger argument says the cause is better-than-expected economic reports that have been piling up recently.
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 National Commission on Fiscal Responsibility and Reform couldn't get enough of its members to approve its own recommendations or to find the 14 votes needed to send its proposal to Congress. But don't count out deficit reduction yet.
New Deficit Plan Retains Social Security Cuts
The new plan to reduce the national deficit, expected to be released Wednesday, includes many of the highly controversial proposals from the previous version, including increasing the Social Security age and reducing benefits from the program.
Obama to Work With Congress on Tax-Cut Agreement
President Barack Obama, who has disagreed with Republican Congress members on whether to extend George W. Bush-era tax cuts for wealthier Americans beyond this year, said Tuesday that he will work with U.S. senators on finding some sort of tax-policy agreement by the end of the year.
Greenspan: Deficit Fears Could Trigger Bond Market Crisis
The U.S. must act to rein in its massive budget deficits or face the risk of a bond market crisis, former Fed Chairman Alan Greenspan said Sunday. If deficits begin to frighten the bond market, interest rates will rise, undermining the recovery, and possibly causing a double-dip recession.