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How Trump's travel ban threatens health care, in 12 charts - Vox | immigration waivers chart

8 Common Myths About Immigration Waivers Chart | Immigration Waivers Chart

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Testifying afore the House Account Committee today, U.S. Treasury Secretary Tim Geithner told Chairman Paul Ryan the following: “We’re not advancing afore you to say we accept a absolute band-aid to that abiding problem. What we do apperceive is we don’t like yours.”

Actually, Admiral Obama array of did accept a absolute solution. He created a debt commission, which devised a abiding debt abridgement plan. Which the admiral rejected. And instead, we get this new account proposal, which makes no accomplishment to accord with Medicare, Medicaid, and Social Security—the abiding drivers of U.S. federal debt. The debt ambit never gets bent, as the aloft White House (!) blueprint shows. (Yes, the blueprint comes from the White House’s Office of Management and Budget.) It aloof goes up and up and up—until the calefaction afterlife of the cosmos or the abridgement is addled by a Greek-style debt crisis.

Here’s what the bipartisan Committee for a Responsible Federal Account says about the president’s plan:

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Over the long-term, the President’s account would not constrain ascent debt, as retirement and bloom affliction costs abide growing faster than the economy. According to the Administration’s own estimates, debt would abound as a allotment of the abridgement accomplished 2022 exceeding 93 percent by 2035 and about 125 percent by 2050. These levels would be both economically acute and ultimately unsustainable.

Well, the president’s account at atomic cuts $4 abundance in debt over ten years, as the White House claims, right? Again, the CRFB:

Well, the answer depends on what accumulation are compared against, and what is counted as accumulation – but in no case does the Admiral accept commensurable arrears abridgement to the Budgetary Commission. To ability his $4.3 trillion in accumulation through 2021, the President’s account counts $1.6 abundance (excluding interest) of already-enacted savings. In addition, it includes two elements which the Budgetary Commission assumed in its baseline – a drawdown of the wars ($740 billion through 2021) and the expiration of the upper-income tax cuts ($830 billion through 2021). If the Commission’s plan were denticulate the same way as the President’s $4.3 trillion, we appraisal it would save almost $6.5 abundance through 2021.

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Well, at atomic the president’s account keeps the debt botheration from accepting any worse over the aing decade, right? Not really. Despite $1.7 abundance in tax increases, debt as a allotment of GDP—already at a historically aerial level—actually ticks up a bit to 76.5 percent from 67.7 percent in 2011 and 74.2 percent in 2012.

And alike to accomplish this, the Obama White House has to accept aflush bread-and-er growth. As the CRFB says:

OMB’s bread-and-er assumptions are somewhat added optimistic than CBO’s, as able-bodied as the Blue Chip accord ranges. The Administration projects absolute GDP advance to be 2.7 percent in 2012 and 3.0 percent in 2013, compared to 2.2 percent and 1 percent, respectively, from the CBO. Importantly, abundant of this aberration is due to the actuality that CBO assumes a temporary bread-and-er abbreviating in 2013 due to all the tax cuts expiring and the automatic spending cloister activity off at the aforementioned time in the alpha of 2013. However, OMB continues to be added optimistic than CBO above this contractionary period, with estimated growth rates of 2.5 percent per year by the end of the decade as against to 2.4 percent by CBO. On the whole, these faster advance ante acceptable advance to a added favorable budgetary account than what CBO would appearance application its bread-and-er projections. By our estimates, if OMB were to employ CBO assumptions debt would balance at about 80 percent of GDP as against to 76 percent.

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My baseline case has been that Obama has no absorption in actuality Clinton 2.0, the Debt Cutting President. He wants to be FDR 2.0, the Expanding Welfare State President. He wants that to be his legacy. Let Ryan or Chris Christie or Marco Rubio be the Austerity Admiral in 2017. And what does Geithner care? He’s on his way out this year. At one point during the hearing, Ryan brought out this blueprint illustrating the appulse of the Ryan debt plan, the one Geithner said “we don’t like”:

And actuality was the barter amid Geithner and Ryan, afterwards Ryan acicular out the alarming account baseline (in red):

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Immigration Lawyers to Join Big Bird in Unemployment Lines | Nation .. | immigration waivers chart

GEITHNER: You could accept taken [the chart] out [to the year] 3000 or to 4000. [Laughs]

RYAN: Yeah, right. We cut it off at the end of the aeon because the economy, according to the CBO, shuts bottomward in 2027 on this path.

And that’s no joke, Mr. Geithner.

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James Pethokoukis is a columnist and blogger for the American Enterprise Institute. He is additionally an official contributor on CNBC television, a all-around business and banking channel. He can be accomplished at [email protected] or on Twitter: @JimPethokoukis

Previously, Pethokoukis was Washington columnist for Reuters Breakingviews, as able-bodied as business editor and economics columnist for U.S. News & World Report.

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