Will the US government run a budget surplus any year during President Obama's first term?

Interesting run of questions Pixel. Although I'd love to vote yes here, I just don't see how it can happen in the first term from where we're starting. Maybe the second one though...

jenni - you better get trimath to tutor you on your math. :O)

Yes, because after we spend billions of dollars on his new "plans" we will suddenly be able to have a surplus.

no because higher taxes reduce government intake.

Just... wow. I figured there would be plenty of spin for this question. :) I'm glad that people are finding the questions interesting.

dragonfang, I will concede that there's not much hope of his plans having a net benefit for the budget in the immediate future. Even the most optimistic estimates say that Obama's plans will add at least $213 billion to the debt during his first term in office when offsetting budget cuts are figured in. When If the economy turns around, tax revenues will increase (since people are making more money), but "when" is the big question. If he does create a significant number of jobs due to those plans and those jobs aren't offset by losses in the private sector, there could be a direct benefit, but, again, I'll admit that it's very unlikely.

Finally, Obama's not proposing a tax increase, as the Republicans tried to say in nearly every (bogus) campaign ad, unless you happen to be one of those making $200k a year or more (or $250k or more if you're married). And even then, it's simply a matter of allowing Bush's tax cuts to expire, as I understand it, which would return the current top 35% tax rate to its former 39.6%. Source: http://www.factcheck.org/elections-2008/spread_the_tax_hooey.html

Also, here's some of the secret plans of the Obama administration. Don't tell him that these got out! ;)

http://www.woot.com/Blog/ViewEntry.aspx?Id=6402

@pixel The problem with obamas tax increases can be stated in two statements: 1: Hes raising taxes for the people who employ people 2: His measure of rich keeps lowering (Joe Biden's latest call for tax breaks for the middle class -- "people making under $150,000 a year." ) However there is some merit to Obamas ideas. If you give money to the middle class and put money in there pockets that is good for the economy. And this does work! This has been proven several times in history (the new deal) However i like a plan that costs less and helps a lot more. If you help the people who employ everyone else then the money can be used to employ people, giving them more money than if we just gave it straight to the middle class, and make more jobs in the US. After all, tax cuts arent going to help you if you have nothing to be taxed! But still these are just two methods that both work for solving the same problem! Democrats, republicans, they both have a idea in mind that has been proven to work! The only difference is we got chuck norris. You dont.

i have still yet to hear anybody explain how you cut taxes for people who DON'T pay taxes. maybe obama will explain that later.

if some how you can reduce the money spent elsewhere . then you can run a surplus but under your present situation it will be hard and@ diesel i truly believe you must be a communist with KKK tendency give the man a break

curios - i wasn't being mean to him. just using his own words.

did he but in what condense, you cannot relate one expression to everything to suit your own thoughts. and expect everyone to believe what you say is correct.

everyone would like to think it will be possible perhaps someone can say when you last ran a surplus perhahs after the war

curios - sorry don't know what you mean in comment #11.

That happens quite a lot on the interent! People will write something down that made sense in there head but makes no sense down in writing.

@pixel

Most small businesses are above the 250k mark. 40% tax should be criminal. Seriously think about it. That is almost half of the money the worked for.

Taxes will be going up in time. (they have to)


In the mean time, lets see how far ultra-Keynesian economics brings us. A lot of the jobs he is creating aren't exactly well thought out. Sure, retrofitting buildings with greener features will take some manpower, but once the job is done what was accomplished? You created a demand for labor that wasn't necessary so that you could redistribute some wealth and get something trivial done in the meantime. What happens to those invested in the labor career now? Now their skill set is entirely dependent on more phony building because the only time everyone is in demand is when money is being spent on anything in sight. Building Museums isn't exactly very profitable for the GDP after all. 300 million dollars for contraceptives won't do much good either, except to save a generation of kids from having to pay off our bills by simply not having them at all!

A surplus is a fantasy during a time when a trillion dollars is just the push of a pen away. I leave you with a quote from a very intelligent man:

“When the people find that they can vote themselves money, that will herald the end of the republic.”
-Benjamin Franklin

Ha ha ha ha...surplus...please, stop! Ha ha ha ha ha!