Here are the raw numbers from the non-partisan Congressional Budget Office, as reported by CNS News:
The Congressional Budget Office (CBO) is projecting that if changes in federal taxing-and-spending policies already enacted and set to take effect at the beginning of next year do in fact take place, the unemployment rate will climb to 9.1 percent.
In a report released on Aug. 22, An Update to the Budget and Economic Outlook: Fiscal Years 2012 to 2022, CBO’s baseline projections show that by the fourth quarter of 2013 the national unemployment rate will be 9.1 percent.
[...]Widely referred to as the “fiscal cliff,” the expiration of the Bush tax cuts and over $1 trillion in automatic defense and discretionary cuts as a result of last year’s failed budget deal are set to take effect in January 2013.
[...]If no action is taken by Congress, current CBO projections show that unemployment will not return to pre-recession levels until 2017.
Under current law, federal health care spending is on pace to exceed all discretionary spending by 2016, according to the Congressional Budget Office (CBO).
The change is due to large increases in Medicare and Medicaid spending and added spending under the Affordable Care Act (Obamacare) over the next decade, a feat the Tax Foundation calls a “truly unprecedented and scary” scenario.
The nonpartisan tax research group analyzed recent CBO projections of the budget for 2012 to 2022, finding that over the next decade Medicare spending will increase from $550 billion to $1.064 trillion, while Medicaid would more than double from $253 billion to $592 billion.
In addition, new exchanges and subsidies under Obamacare will force mandatory healthcare expenditures to grow from $25 billion to $181 billion in 2022.
“In total, healthcare entitlement spending is due to more than double, from $828 billion this year to $1.837 trillion in 2022,” according to the Tax Foundation.
“This means healthcare spending will overtake all discretionary spending in 2016 – Obama’s last year in office if reelected,” the group said.
And more CBO: taxes will shoot up by more than 30% between 2012 and 2014:
The amount of money the federal government takes out of the U.S. economy in taxes will increase by more than 30 percent between 2012 and 2014, according to the Budget and Economic Outlook published today by the CBO.
At the same time, according to CBO, the economy will remain sluggish, partly because of higher taxes.
“In particular, between 2012 and 2014, revenues in CBO’s baseline shoot up by more than 30 percent,” said CBO, “mostly because of the recent or scheduled expirations of tax provisions, such as those that lower income tax rates and limit the reach of the alternative minimum tax (AMT), and the imposition of new taxes, fees, and penalties that are scheduled to go into effect.”
The U.S. economy, CBO projects, will perform “below its potential” for another six years and unemployment will remain above 7 percent for another three.
And the GAO reports that the Obama administration has waived work requirements for welfare programs, which reduces revenues from employee income taxes and increases spending on welfare programs.
Now you might expect that the Democrats would have some bold plan to tackle unemployment, spending and high taxes. And they do!
Bold policy ideas at the Democrat National Convention
Take a look at this video on bold, innovative tax policy from the DNC convention:
That will fix unemployment for sure.
And they want to augment that tax policy with some reasonable pro-growth regulations:
If you don’t think that this is a good plan to solve our economic problems, then Democrats will say that you’re a racist homophobic Islamophobic sexist bigot.