There is a lot of finger pointing and spin on what happened to get us into all of the debt that we are in right now. The Center for American Progress explains what happened based on a Congressional Budget Office report.
The highlights are:
- The Recession reduced the projected surpluses from $5.9 trillion to $2.6 trillion. The economy accounted for 26% of the deficit.
- From 2001 to 2008 new tax cuts were signed into law by President Bush and accounted for shrinking $2.3 trillion of the surplus. They are responsible for 20% of the deficit.
- Under President Bush spending went up for: Military (War in Iraq, War in Afghanistan), other spending increases such as Medicare part D, Department of Homeland Security, and interest payments accounts for 40% of the deficit.
- The stimulus started under President Bush and continued under President Obama accounts for 6% of the deficit.
- Obama tax cuts, extension of tax Bush Cuts, some spending increases accounts for the 8% of the deficit.