U.S. Federal Budget FY 2008 Summary:
This summary guides you through the FY 2008 Federal budget, including:
- Assumptions about U.S. economic growth,
- Revenue projections,
- Discretionary and mandatory spending proposals, and
- The impact of deficit spending.
It provides a summary of the key proposals and how they affected the U.S. economy. It also highlights important areas that the U.S. Federal Budget for FY 2008 disregarded. Finally, this primer provides background issue papers available for further reading.
Assumptions About the U.S. Economy:
The FY 2008 budget was based on assumptions about the U.S. economy and trends for the future. These assumptions were outlined in the Economic Report of the President
- FY 2008. It had an excellent discussion of key economic trends.
However, an important issue that wasn't discussed was the U.S. debt. There was no mention made of the Inverted Yield Curve, which was a clear signal of the impending recession.
FY 2008 Budget Revenue Projections:
Three questions must be answered to determine whether the revenue projections were realistic:
- Were the GDP forecasts realistic?
- Were revenue projections accurate?
- Did the budget postpone a revenue crisis?
These questions are answered in
FY 2008 Federal Budget - Revenue Projections
The revenue projections did not address the impact of the Alternative Minimum Tax. The budget also (correctly) assumed the continuation of the EGTRRA and JGTRRA tax relief acts. These were, in fact, extended by Congress in 2010.
FY 2008 Budget Spending Proposals:
FY 2008 Deficit Spending:
The FY 2008 Federal Budget forecast a balanced budget by 2012. The recession made sure this would not happen. Find out the issues surrounding the U.S. Federal Budget Deficit
and why it's been so difficult to erase.
To help understand the U.S. Federal Budget, the following may provide good background reading:
Compare to Other U.S. Federal Budgets: