Obama's new budget proposal would reduce planned deficits by $2.5 trillion

I don't know how they can know what the reductions would be for sure with so much not spelled out yet, but this is still much than the $4 trillion Obama claimed.

A leading panel of budget experts estimated Thursday that President Obama's latest spending plan does not save as much money as the White House initially claimed and is about $1.5 trillion more expensive than the Republican plan.
Since he delivered a major fiscal policy address last week, Obama and other officials have touted that the White House plan would cut $4 trillion over 12 years. Using that figure, they've claimed it's very similar to a House Republican plan which supposedly would cut $4.4 trillion over 10 years.
But given that most budget outlines use a 10-year window, as required by law, the Committee for a Responsible Federal Budget tried to offer an apples-to-apples comparison -- and determined Obama's proposal would actually cut deficits by $2.5 trillion over the next decade. It credited the president for "moving the ball forward," but said that based on Congressional Budget Office assumptions, the plan doesn't do enough to tackle the debt crisis.
"It appears unlikely that the policies proposed in the president's framework would be sufficient to reduce debt to a manageable level," they wrote.
In response, the White House claimed that using the 10-year window, the president's budget plan would cut $2.9 trillion, not $2.5 trillion. And officials continued to stand by the claim that it cuts $4 trillion over 12 years. A White House aide suggested the president's plan would save more than the committee claims in part because of a "failsafe" provision that would trigger additional spending cuts if debt reduction goals are not met. . . .

Yet, at the same time, Obama is making strong statements such as this:

Now, if we don’t close this deficit, now that the economy has begun to grow again, if we keep on spending more than we take in, it’s going to cause serious damage to our economy. . . .

I have tried pointing this out many times, but someone really needs to shame Obama from continually making this outrageous claim:

So we were left with a big deficit as I was coming into office. . . .

Labels: ,


Post a Comment

<< Home