Surpluses, Tax Cuts & Debts
Q. Just how big is this surplus?
A. Both the Congressional Budget Office (CBO) and
the Office of Management and Budget (OMB) estimate the
surplus for 1999 at about $99 billion, $142 billion by
the end of 2000, and up to $1 trillion over
the next 15 years. Since the CBO works for a Republican-controlled Congress and the OMB works for a
Democrat-controlled White House, there is little
disagreement over the size of the surplus. (Estimates
are as of 8/5/99 and may have been adjusted since.)
Q. Where is all that money coming from?
A. Government downsizing, reduced government spending,
and the virtual end of the arms race have contributed,
but the vast majority is coming from excess Social Security
taxes being paid by the workforce and designed to keep
Social Security benefit checks coming into the next
century. Of the $142 billion surplus projected by
the end of 2000, $137 billion will come from excess
Social Security taxes.
Q. Does the fact that we have a surplus mean we no longer have a national debt?
A. Not by a long shot. Just as you or I might have a
little money left at the end of the month, but still
owe a bundle on credit cards, mortgages and loans, paying
off the USA's credit debt (the "national debt") would
require about $13,400 from each man, woman and child
in America. Got your checkbook?
Congressional Budget Office (CBO)
usgovinfo.about.com
Office of Management and Budget (OMB)
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Source:
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