To: Dale Baker who wrote (2563 ) 1/25/2000 7:12:00 PM From: EL KABONG!!! Read Replies (2) | Respond to of 3543
Hmmm... This article would certainly seem to bode well for the US markets for the foreseeable future, presuming that everyone is true to his/her words...nytimes.com January 25, 2000 Federal Surplus Will Surge, Congressional Budget Office Says Related Articles The New York Times: Issue in Depth: The Budget Congressional Guide By RICHARD W. STEVENSON WASHINGTON, Jan. 25 -- Driven by the strong economy and the flood of tax revenues it is generating, the federal budget surplus will surge over the next decade to levels that would have been inconceivable only a few years ago when the government was struggling to close persistent deficits, the Congressional Budget Office said in a report made public today. Under the set of assumptions traditionally used to project the budget outlook, including a deep cut in spending next year, the surplus outside of the Social Security system for the next 10 years would total more than $1.9 trillion, twice as much as estimated by the budget office last year, the report said. Using other assumptions that provide for higher spending levels, the 10-year surplus projections range from $838 billion to more than $1.8 trillion. But no matter how the numbers are qualified, they are big, and they set out the parameters of an election-year debate between the two parties over how best to use the bounty of the nation's prosperity. All the leading presidential candidates have plans to divide the surplus among tax cuts, spending programs and efforts to reduce the national debt. The increase in the surplus estimates also allowed the Republican majority in Congress to assert that it had stuck to its pledge not to dip into Social Security money to pay for general government operations during the current fiscal year. Under prior projections by the budget office, the spending bills passed by Congress last year required borrowing $17 billion from Social Security this year. But the new projections show that there will be an operating surplus for this year of $23 billion, a swing of $40 billion that insulates Republicans from charges of fiscal irresponsibility. The Clinton administration will issue its own surplus projections in two weeks. But even before the new Congressional estimates were made public today by members of both parties, President Clinton said he intended to make a push to accelerate repayment of the national debt. Appearing in the White House briefing room, Mr. Clinton said he will offer a plan to pay off by 2013 the entire $3.6 trillion owed by the federal government to the public in the form of Treasury bonds. Last year Mr. Clinton proposed a plan to pay off the public debt by 2015. In addition to the public debt, the government owes $2 trillion to the Social Security system to pay retirement benefits starting in about 15 years. KJC