Despite Previous Promises Obama Will Propose Another Budget Today That Projects the Deficit at $1.33 Trillion
In 2009 Barack Obama promised to cut the deficit in half by the end of his first term.
“We cannot simply spend as we please and defer the consequences to the next budget, administration or generation.”
He has no intention of cutting the deficit.
(J. Hoft Chart)
In fact this year will be the fourth year in a row that the US deficit will top $1.1 trillion.
Another Obama record.
Today Barack Obama will give Congress a budget that projects the deficit at $1.33 trillion this fiscal year or 8.5 percent of gross domestic product.
Congress is free to ignore the president’s proposals and Republicans have said Obama’s budget will be dead on arrival.
“Jack Lew did the full tour of all five Sunday shows this morning, failing on each show to articulate how their upcoming budget would lift the crushing burden of debt,” said Gerrit Lansing, spokesman for House of Representatives Budget Committee Chairman Paul Ryan, a Republican.
President Barack Obama’s chief of staff, Jacob Lew, defended his boss on Sunday for failing to cut the U.S. budget deficit, making the election-year argument that now was the wrong time to impose austerity measures that could sap an economic recovery.
Republicans have slammed Democrat Obama for laying out a budget plan that raises taxes on the rich, which they view as designed to help his campaign for re-election on Nov. 6, rather than controlling the growth of the U.S. deficit and debt.
But Lew, speaking on Sunday television news shows on the eve of Obama’s 2013 budget proposal to Congress, said the plan would outline $4 trillion in 10 year deficit reductions, alongside measures to deliver essential suport to near-term growth.
“I think there is pretty broad agreement that the time for austerity is not today,” Lew, Obama’s budget chief until few weeks ago, told NBC’s “Meet the Press”…
…The budget, which will delivered to Congress on Monday, projects the deficit at $1.33 trillion this fiscal year or 8.5 percent of gross domestic product, declining to $901 billion, or 5.5 percent of GDP, in 2013.
Obama pledged in 2009 to have halved the deficit by next year, and his failure to deliver has provided Republicans with ammunition as they seek to deny him a second term by portraying him as old style tax and spend liberal.
“On this issue – the debt – this president has been completely AWOL. Republicans have had to fight tooth and nail for every dime in savings we’ve secured,” Mitch McConnell, the top Republican in the U.S. Senate, said on Thursday.
Lew, however, argued that Obama’s deficit promise was made before he truly understood the depth of the recession he had inherited from Republican President George W. Bush.