Huffington Post: Bush-Era Tax Cuts Projected As Largest Contributor To Public Debt

If the Bush-era tax cuts are renewed next year, that policy will by 2019 be the largest contributor to the nation's public debt -- "the sum of annual budget deficits, minus annual surpluses" -- according to new analysis from the non-partisan Center for Budget and Policy Priorities (CPBB).

These tax breaks for the nation's top earners, combined with the cost of fighting wars in Iraq and Afghanistan, will account for nearly half the public debt in 2019, measured as a percentage of economic output, the CBPP's analysis shows. The debt caused by the Trouble Asset Relief Program and the rescue of Fannie and Freddie is a minor factor in the national debt.


Tax cuts for the highest earners were renewed  last year when Obama worked a compromise with the 112th GOP congress.

President Barack Obama wants to make sure the Bush-era tax cuts expire naturally in 2012.

The CBPP says:

[S]imply letting the Bush tax cuts expire on schedule (or paying for any portions that policymakers decide to extend) would stabilize the debt-to-GDP ratio for the next decade. While we'd have to do much more to keep the debt stable over the longer run, that would be a huge accomplishment.

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