Kicking the Can: The U.S. Congress, the Bush Administration and the 2008 Budget

摘要

In December 2008, the U.S. Department of the Treasury issued its annual report on thehealth of the federal budget. The report details the U.S. government's long-termfinancial outlook, including the biggest fiscal challenge, i.e., the unsustainable growthin entitlement programs. Later the same month, U.S. federal budget legislation for FY2008 was completed, with passage of an approximately $555 billion omnibusappropriations bill for largely non-defense spending ($70 billion was included for thewars in Iraq and Afghanistan). There was considerable conflict between the DemocraticCongress and the Bush Administration over funding for these two wars. Except for theMexican War (1846-48), the U.S. has always raised taxes to pay for war, lest deficit anddebt get out of hand. This article examines the FY 2008 budget and issues related to itspassage, and the longer-term issue of U.S. government fiscal sustainability. It arguesthat Congress did little to address this problem, rejecting the few initiatives proposed bythe Bush Administration. The budget views of the presidential candidates suggest thatU.S. fiscal sustainability will remain in jeopardy.